Startup Funding | Role of Venture Capitalists in Startup Funding

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 Let's see how venture capital startup funding works- there are two groups, one where entrepreneurs have a unique and innovative business idea but lack the funds to execute the same. 

 Another group where investors have capital but lack ideas, When both these groups work together, innovation takes place. 

We all are aware that all startups are not always successful. If there are 50 startups looking for fundraising, hardly 10-15 or maybe more or less of them will get fund Raising for the expansion of the startup. 

Venture Capital  firms are taking risks while investing in startups. They take managed risks to earn high rewards. Each and every process is done in such a way that they are able to acquire more equity at a specific price, and set up new management.

The pivotal contribution of VCs is that they invest money that is reimbursable only in case of liquidation. On the other hand, there are investment banks Delhi that provide funds that are repayable. Banks also take interest rates irrespective of the startup's failure or success, an asset is also acquired by the banks in case the company is unable to repay the loan. 

The main difference between Banking Boutique Firms in Delhi and angel investors is that- venture firms collect funds from various other investors and provide them to startups, on the other hand, angel investors are rich individuals. 

Whereas the difference between venture capital firms and Investment Banking Boutique Firms in Mumbai is that they invest in new startups whereas PE firms invest in established companies. 

At this, we conclude that venture capitalist promotes innovation by investing in them with the help of government and private organizations. 
Location: Jmd regent plaza, Mehrauli-Gurgaon Rd, near Guru Dronacharya, Sikanderpur, Sector 26, Gurugram, Haryana 122002, India

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