Venture Capital refers to the finance provided by Venture Capitalists, who invest in relatively new, high growth companies or startups that have a potential to grow and develop into highly profitable ventures. It has high-risk and high-return characteristics. Therefore, it acts as an important source of finance for entrepreneurs with new ideas. A new private company which does not want to take finance from public markets may have their eyes on venture capital. Venture capital is provided to any business firm by those who are willing to invest in the projects that are risky but have a promising future prospect. Such funds are known as venture capital funds. Venture capital has now gained a certain degree of densification, maturity and edification in the US. The phenomenon of venture capital is new for the Indians but it was one of the much talked things about financing alternatives in India in and around the nineties.