Venture capital as a source of finance for enterprises

Venture capital (VC) is a long term risk capital provided by professionals to new, growing, innovative and promising companies. A venture capitalist is a person or investment firm that provides venture investment, managerial expertise, technical expertise, networking etc. to Investee Company. It is the need of the hour to encourage venture capital in India, as it will widen the industrial base of high tech industries and promote the growth of technology. This paper attempts to outline the concept of venture capital, trace its advantages and disadvantages as a source of finance for enterprises, stages and methods of venture capital financing.