Venture capital financing is an alternative source of financing business projects, particularly those that are high-technology, high-risk and high return based. Venture capital is a new financial service, the emergence of which went towards developing strategies to help a new class of new entrepreneurs to convert their business ideas into realities. There is a need for further encouragement of risk capital in India as this widens the industrial base of hi-tech industries and promotes the growth of the technology. The venture capital movement did not take deep roots in India so far, but the scope for further progress is enormous.