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Venture capital is a relatively new phenomenon. Technology based small scale units and first generation entrepreneurs keen to enter new technology areas are the ones who can be supported by venture capital. Small Industries Development Bank of India has recently introduced a venture capital scheme to extend venture capital support to SSI units. This concept needs to be widely practiced in both the public and private sector. Venture capital funds can give fund support to new units in a variety of ways. Setting up of limited partnership with the entrepreneur is one such.

Major Venture Capital Financial Institutions

- Technology Development & Information Company of India Limited (TDICI)

- Risk Capital & Technology Finance Corporation Limited (RCTC)