By Accommodation Times News Service
A venture capital is the fund or capital provided to business typically for new/untested ideas. Venture capital normally comes in where the conventional sources of finance do not fit in. it the capital funds that manage venture capital money, these funds aggregate money from several investors who want to provide venture capital and deploy this money in venture capital opportunities. Typically venture capital funds have a higher risk/ higher return profile as compared to normal equity funds and whether you should invest in these would depend on your specific risk profile and investment time-frame.
Venture firms based find real estate projects more lucrative. According to the Securities and Exchange Board of India said, the bulk of these funds have been parked in real estate projects. There are total of 180 domestic VCF registered compared with 154 foreign venture capital investors. The real estate investment focused firms are Kotak Mahindra Realty Fund, JM Financial Property Fund, India Realty Venture Capital Fund, and India Development and construction Fund and HDFC Property Fund.
Venture capital consists of equity or conditional loan in order to promote unlisted high risk or high tech firms driven by technically or professionally qualified entrepreneurs. According to the regulations new venture capital funds launched in the country will be classified as alternative investments funds. But funds that were registered with SEBI to the new rules will continue to be governed by the old rules classify them as venture capital funds till time they are wound up.