A venture capital fund is a type of investment fund which is provided to start-ups which have huge growth potential in the future by the investors.
Many of the successful companies out there once started as a start-up and they required funds for the expansion and day-to-day operations of the business. That’s when venture capital funds come into the scenario and they provide the required fund to the start-ups which by utilising these funds grow, expand and become successful.
For example, Flipkart was once a start-up founded in 2007 by Sachin Bansal and Binny Bansal. They received their funding from venture capital firms Accel India and Tiger Global which helped Flipkart to grow massively and turn into a name in the households of our country. This type of investment is generally done by strong investors, high net worth individuals and investment banks.
This investment is risky but at the same time the returns are huge if the start-up becomes successful.
Let’s look at some of the top venture capital funds in India: