Value Added Services of Venture Capitalists’ to Portfolio Companies -A Study

Venture Capitalists are investors make high-risk equity investments in new portfolio companies. They not only provide fund but also add value to their ventures in which they have invested. The current research work focuses on value added services provided by Venture Capitalists for their Portfolio Companies in South India. The result shows that, sales and marketing, HR management assistance and operational management are the activities which supported by the VCs to Portfolio Companies and spend their time in managing their portfolios. The study also demonstrates that the value adding contributes to the success of Portfolio Companies. To conclude, Venture Capitalists play a significant more active role in managing their investments than traditional financial intermediaries.