MARCH 20229venture capital funds contribute huge sums of funding to a firm for growth and expansion while also monitoring its progress to ensure that their investment produces long-term growth.Micro VCsMicro VCs are a type of venture capital with a fund size of $60 million to $70 million dollars. Micro VCs invest in early-stage firms in exchange for a share of the company's equity.Corporate Venture CapitalCorporate Venture Capital is another type of VC (CVC). CVCs provide resources such as marketing skills, strategic guidance, or a line of credit to businesses. CVC provides capital in exchange for a share of the company's equity. Mahindra Partners, Reliance Ventures, and Times Group's Brand Capital are among the Indian CVCs.Venture Debt FundsIn exchange for non-convertible debentures (NCDs) and equity warrants, venture debt funds lend you money. Some companies that provide venture debt financing to Indian businesses are Alteria Capital and Trifecta Capital.Government Grants & Funds-Startup India Seed Fund SchemeGrants and Funds from the Government of India-Startup India Seed Fund SchemeThe Government of India's Startup India initiative aims to create a strong startup ecosystem in the country in or-der to foster innovation and provide chances for aspiring entrepreneurs.On January 16, 2016, the Hon'ble Prime Minister launched a Startup India Action Plan that included 19 ac-tion points.This Action Plan outlined a strategy for creating a fa-vourable startup environment in India. As a result, a slew of initiatives have been launched to support startups. One such plan, the Startup India Seed Fund Scheme (SISFS), gives financial help to early-stage enterprises.Startups can only get funding from angel investors and venture capital firms when they have demonstrated their concept. Similarly, banks only lend to applicants who have assets to back up their claims. Seed capital is critical for firms with new ideas to undergo proof of concept trials.The Government of India's Startup India initiative aims to create a strong startup ecosystem in the country in or-der to foster innovation and provide chances for aspiring entrepreneurs.The Startup India Seed Fund Scheme (SISFS) intends to help entrepreneurs with proof of concept, prototype development, product trials, market entry, and commer-cialization.This would allow these firms to progress to the point where they might seek funding from angel investors or venture capitalists, as well as obtain loans from commer-cial banks or financial institutions.Incubators and AcceleratorsWhile all of the above funding alternatives are for already-existing businesses, incubators and accelerators are simi-lar to startup prep schools. These programmes last four to eight months and provide cash as well as a venue for entrepreneurs to engage with investors, mentors, and other startups.Y Combinator, GSF Accelerator, Microsoft Accelerator, Google Launchpad Accelerator, and JioGenNext are just a few of the popular accelerator programmes for Indian entrepreneurs.Family OfficesFamily offices are another source of funding for Indian entrepreneurs. In India, family enterprises have a long history of passing on their assets to the next generation. There are about 140 family offices in India that have made significant investments in the startup ecosystem. Accord-ing to a research by Praxis Global Alliance and 256 Net-work, they have been actively participating in 50+ such deals every year since 2015. Family offices are another source of funding for Indian entrepreneurs. In India, family enterprises have a long history of passing on their assets to the next generation
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