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With just 1000 bucks you can now fund a business!
By siliconindia
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Friday, 06 August 2010, 18:55 IST |
8 Comments
1000 to become a venture capitalist and for this, the credit goes to 'crowd funding'. Crowd funding now makes it possible to become a shareholder in new projects, reports Puja Banta of Rediff.com.
Crowd funding is an extension of crowd sourcing. In crowd funding, the financial requirements of a business are outsourced to a group of people. The launch of GrowVC's 'Virtual Silicon Valley' software platform is a concept that has been formally introduced in India.
To start a business, you need funds, and when you approach venture capitalists for these funds, they want to see the progress you have made and the tangible results that your business has produced; which in turn cannot be achieved without sufficient funds. Here comes the importance of Angel investors. They fund start-ups at an early stage and help them reach a level where they can get other investors in.
"Unfortunately in India, angel funds -- or incubators -- are too few compared to the amount of talent, ideas and potential entrepreneurs that the country can produce. In the United States, around 350,000 angels invest up to $30 billion annually to fund around 60,000 new ventures. Whereas in India, the angel investments are in the range of $ 15 to 20 million annually," says Satish Kataria, managing director of Springboard Ventures, the official partners of GrowVC in India.
