Some big banks remain wary of venture capital.
Sentiment: NEGATIVE
So many folks in the venture capital business are sheep that just want to follow the herd. They are momentum investors purchasing highly illiquid investments. That is a recipe for disaster.
Venture capital is always wanting to go up market.
There's almost too much venture capital in India - there are issues with seed capital, but for venture capital, there's a lot money chasing deals here.
Big banks have long had private equity divisions that put up capital for deals too complex or risky for individual shareholders to finance.
If your business had no risk, you could go get a bank loan and call it a day. VCs like risks - without them, venture capital wouldn't exist. But they need to be risks that VCs are good at assessing and managing.
I don't think a lot of people have been entrepreneurial about venture capital.
Banking is a very treacherous business because you don't realize it is risky until it is too late. It is like calm waters that deliver huge storms.
Finance is critical. If sufficient investment is made in infrastructure and venture capital is made available, there will be a big improvement in the situation.
Venture funds get beaten up for not investing in important things. Okay, if you want venture funds to invest in important things, then don't penalize or make fun of them when those important things don't work.
Whatever the potential pitfalls, banks are increasingly enthusiastic about venture capital, particularly in new companies with strong prospects in fields like health care and technology.