VENTURE CAPITALIST ACTING AS A CATALYST FOR START-UP ECOSYSTEM

The big idea, from the garage to Wall Street, a journey well-traveled by entrepreneurs had people who believed in the idea and supported them from the beginning. Our country, an emerging land of entrepreneurship, is buzzing with great start-up ideas every hour, and every entrepreneur is dreaming to take his idea to the world, from local to global markets.

- Jyoti Bhandari

Venture capitalists are not just filling in with the financial resources, they are also helping trigger the growth of the company by improving the product suite, bringing in new technology by monitoring controlling the revenue model, and thus enhancing the competitiveness of start-ups. Post Covid-19, start-ups are distressed due to not just lack of financial resources, also impacted by the change in the business environment with new consumer behavior and practices, from working from home to consumption of products and services. While there have been enormous challenges, the new post covid world has flooded the desks of venture capitalists with ideas with the potential to become unicorns. The fund raised through venture capitalists mainly goes into creating the structure of the company and making it an opportunity to take its flight to wall street. It entails building the infrastructure, setting up processes, bringing in the right set of talent, economies to scale, and making the product available to target market segments. Here are a few factors that make venture capitalists working as catalysts to start-ups:

Bridging the Financial Gap

With the current pandemic-led economic downturn, start-ups are facing tremendous challenges to stay afloat and manage their working capital. Venture Capitals can facilitate these budding companies who are set to change the world and meet their goals.