Mains Paper 3: Economy | Development and Employment
From UPSC perspective, the following things are important:
Prelims level: Particulars of the seminar, Difference between VCs and Angel Investors
Mains level: Boosting the startup ecosystem in India
2nd Startup India Investment Seminar
- Embassy of India in China in partnership with Startup India Association (SIA) and Venture Gurukool organized 2nd Startup India Investment Seminar in Beijing for fostering innovation and entrepreneurship among Indian youth.
- The event was planned to expose Chinese VCs and investors to the promising Indian startups and also help Indian startups to reach out to the large Chinese investors for receiving investment for their companies.
- Forty-two Indian entrepreneurs representing 20 Indian startups participated in the event and pitched before Chinese investors to make investments in their ventures.
- More than 350 Chinese Venture Capital (VC) funds, angel investors participated in a day long pitching session and seminar.
- A panel discussion was also organised to discuss effective strategy for Chinese VCs to enter the Indian startup market and share their experiences about the Indian startup ecosystem.
- A venture capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but does not have access to equities markets.
- Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.
- An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
- A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share research and pool their investment capital, as well as to provide advice to their portfolio companies.