The Economics of Venture Capital Firm Operations in India

Studies investment, portfolio involvement and exit strategies of venture capital firms investing in high-technology early-stage start-ups in India.

Kshitija Joshi (Author)

9781108836340, Cambridge University Press

Hardback, published 29 October 2020

214 pages
23.5 x 15.8 x 1.8 cm, 0.41 kg

This book studies diverse categories of venture capital (VC) firms in India based on their ownership type (domestic vs foreign), stage of investment (early vs growth stage) and VC investment team composition (entrepreneurial experience vs investing experience). For each category of VC firms, the nuances in their investment, portfolio involvement and exit strategies are separately analysed. Employing the framework of information asymmetry, the book studies how different categories of VC firms rely on distinct mechanisms such as deal syndication and domain specialization to address the ensuing adverse selection and agency risks. It also delves into the macro context by assessing whether the emergence of VC in India has been driven by 'pull' or 'push' factors. This is accomplished by analysing in depth the supply and demand of VC funds. Finally, it critically reviews the existing policies of entrepreneurial finance and arrives at recommendations for future directions of the same.

1. Introduction
2. Ecosystem and strategic decision making
3. Context and methods
4. Fund raising: systematic and non-systematic influences
5. High-tech clusters in India
6. Investment strategies
7. Involvement and value-add in investee ventures
8. Venture capital exits: what drives success?
9. Conclusion
References
Index.

Subject Areas: Operational research [KJT], Entrepreneurship [KJH], E-commerce: business aspects [KJE], Business & management [KJ], Economics of industrial organisation [KCD], Macroeconomics [KCB], Economics [KC]