Venture capitals always look for opportunities to cash in. It seems that US venture capital firms have now found a very good place- India. They are now raising millions of dollars to invest in Indian start ups or young companies. Indian economy is growing and that is why the US based VC firms are now so eager to make the most. I am quoting from a report of the Financial express:
“It is raining dollars for Indian entrepreneurs, with a large number of US-based venture capitalists (VC) lining up a huge kitty of about 4.4 billion dollars (over Rs 20,000 crore) for investing in the country’s start-ups and early-stage companies.
According to a new study, over 44 US-based VCs have either raised or are in process of raising between 40 and 400 million dollars for early-stage investments in Indian companies over the next 4-5 years. The latest trend is being seen by the industry experts as a resurgence of VC activities in the country following huge losses incurred by the venture capitalists and private equity investors during the bust that followed the dotcom boom in late 1990s.”
Wow, $4.4 billion! Of course, India is an ideal place for investing- especially in the tech sector. However, I hope that VC firms are not looking for a quick return for their investment. I feel that Indian companies and also VC firms should spend more money on research and innovations. If you want to make quick money then innovations are the key.
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