Essay Example on EMERGING SOURCES OF FUNDS FOR NEW PROJECTS

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Funds is one of the most important factor for a project to become successful Even if we have a brilliant idea and technology but if we do not have the funds to implement it then it is of no use In today's world people are becoming more and more innovative and enthusiastic and are indulging themselves and investing a lot in new projects In the recent times there have been many emerging sources of funds for new projects Many countries are moving from closed market economy to open market economy They are implementing reforms and legislations in order to attract foreign investment In order to cover up for the insufficient public funds and the growing demand for the infrastructure project funding etc the government is seeking the aid of private sector financing Yamuna Expressway that connects Greater Noida with Agra is a very good example of Public Private Partnership Many new companies have established themselves in the recent times Emerging companies face many hardships and challenges while arranging funds for their venture in the competitive market Venture Capital helps these companies to survive in the competitive world Venture Capital is financing where the investors provide funds to startup companies and small business which are expected to have a long term growth To go by the reports of Perquin Venture Capital financing has grown dramatically over the last decade The venture capital industry in India has reached new heights


They not only provide financial and monetary help but also guide and mentor the young and emerging entrepreneurs to run a viable business venture Industrial financing is supported to great extend in India The 2016 World Bank Ease of Doing Business ranked India at 130 where starting a business rank for the country is even lower at155 Indian policies and regulations had been criticized for starting up business in India major issues were related to taxation multi window clearances and bureaucracy Recently under the Narendra Modi s government it is taking active part in providing funding in the form of loans and grants A survey conducted by the Internet and Mobile Association of India IAMAI marked industry body growth talent management and funding as the major challenges faced by the startups According to National Association of Venture Capital Venture Capital is the money provided by the professional who wish to invest along with management in young and rapidly growing companies that have the capability to grow up into significant economies Venture Capital is significant factor to provide equity to young startups The SEBI regulations states that venture capital fund are funds established in the form of a company or trust who raise money through loans donations issues of securities The funds thus collected are then made available for investment in highly profitable ventures Venture Capital invests in business having a professional background A venture capitalist must be careful and invest in companies startups which have the potential to become successful and provide high rate of return in order to compensate for taking risk Risk of company failing As a venture capitalist invests in a company startup they mentor and guide the project in order to make it a successful venture 



They are the members of the board of directors of the company and are a significant part of the company s decision making body Startup India is a campaign announced by the Prime Minister of India Shri Narendra Modi on 15 August 2015 This campaign is primarily aimed at providing banking financing to startups to and uplift entrepreneurship in India According to this programme about 1 25 bank branches will provide loan to young entrepreneurs at least one Dalit or Adivasi and one woman entrepreneur This campaign will also pave way for new jobs This scheme facilitates entrepreneurs from registering their startups through an app within a day and providing tax exemptions for startups to a 1 5 billion fund for supporting startups Startup India ultimately aims at making India the ultimate destination for startups and investors As announced by the Prime Minister it provides exemptions and compensation on capital gain tax for 3 years funds of Rs 10 000 crores to support Startups and guarantee funds for them Over 500 tinkering labs 35 incubators 31 innovation centers 7 new research parks and 5 new bio exist on the execution plan of action of Startup India New policies for registrations patenting and bankruptcy have been introduced to save time and cost of operation The government will bear cost of startups to file IP The startup India is being taken as a great example of government support towards the startups After all it allows young entrepreneurs to get easy funding and tax relaxation and compensation Many countries of Asia and Middle East are still facing many hardships in the startup sector Bitcoin the world s first decentralized digital currency is a cryptocurrency and worldwide payment system has reached an important milestone with its price rising above 10 000 for the first time This headlines went on to make people aware of the existence of bitcoins and other cryptocurrency available Bitcoins have proved to be immensely profitable in the recent times Bitcoins have been there for seven months but it is only now the investors are looking to invest In order to invest in something we need to have a long term idea of the investment and the risk involved behind it


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