Summary

India has the beginning of a VC industry in place with interested investors, a large pool of talent entrenched in a history of local entrepreneurship, and increasing government commitment for building the infrastructure to support it. In addition, Indian successes in the domestic and Silicon Valley markets have created the necessary spirit and excitement needed to mobilize a vested interest in this industry. What India needs now is the risk capital and managerial guidance to take its VC industry to the next level.

Besides the growth of domestic VC capital, an estimated $10 billion is expected in the form of foreign investments. This wealth would then lead to sustainable employment generation of approximately three million jobs in the skilled sector over the next five years . Spin-off effects from this employment can create a position of rapid economic growth and a position of strength for India in the Innovation Economy.

The VC industry in India can be an important catalyst for India's success in the knowledge Innovation Economy by making much-needed risk capital and managerial expertise available for early stage funding. The broad role of VC as opposed to other forms of funding provides not only much needed finance for Indian funds, but also the hands-on managerial expertise and support for entrepreneurial development.

About the Author

This chapter was co- authored by Arti Kuthiala . With a bachelor's in applied psychology from Delhi University in India, she has worked for the United States Chamber of Commerce and the San Francisco Global Trade Council. Arti is currently pursuing a master's degree in business administration at San Francisco State University, where she is also collaborating on numerous projects with the Ohrenschall Center for Entrepreneurship.