Appropriate sources of venture capital in India
Venture capital is all about dealings with small or enormous loans for business holders. There are many primary sources, like bank loans, business incubators, and others. Whenever you approach a business plan, you need to set a budget, and that’s what capital. People always think about the primary resources which are already the limelight in this field. But there are other sources that are reliable.
Institutions providing venture capital
Industrial development bank of India has a separate division called venture capital division. They can produce around 20 crores for investing in any business. It comes under all India financial institution.
State wise finance is also available. For example, Gujrat Finance Corporation helps people in Gujrat to manage loans for their business.
Individual banks also provide loans according to the goodness of your business plan. Banks like SBI, Canara Bank, and much more help in dealing with huge investments.
Many private sector companies provide funds for gaining profits like Mafat Lal and Hindustan Lever.
Other sources of venture capital
Several sources provide venture capital to make profits. There are types of venture capital where the shares are different. It depends on the sources or the guidelines provided by the authority.
Equality capital is one of the significant funds that hold more profits for the fund provider. 49% of the benefit needs to be shared with the source.
Conditional debt is lending a mortgage for a condition. You don’t need to pay any interest for a loan. But, a royalty fund of 2 to 15% will get charged when your business will be converted into some royal level. Sources get a big profit for this fund indirectly in the name of royalty fund.
Income note is a combination of conventional bank loans and conditional debts. The lender needs to consider both interest and royalty fund. You might be thinking about why you should choose this plan over a bank loan. The reason is the interest you pay is lesser than the interest charged in a bank.
SBI also provides shares in the market. This is helpful for small entrepreneurs. Due to public issues, people prefer these types of services. But, when you succeed, you can attend the open matters.
Sharing stocks in the whole market is another source. There are some companies which are also involved in sharing profits in phases for the public. The share is fixed, and that is 60% of the total stocks.
Shares, loans, and small funds should not harm the public. The public should get profited at any cost. So, the government takes care of this issue. Guidelines are made so that lenders will follow the instructions.
These are the detailed sources of venture capital in India. You have driven deep into venture capital.