How private equity investments help companies to have better ROI
The startup ecosystem in India is booming with ambitious entrepreneurial talent, foreign funding and government support. The secret to the success of a startup besides indigenous talent is funding for which thankfully there are several options in India. A startup in the seed stage, growth stage, expansion stage or mezzanine stage needs private investments to survive and grow. Some options at the disposal of startup founders are angel investors, venture capitalists, incubators & accelerators and private equity firms in India. Private equity has emerged as a promising alternative for mature companies looking to raise capital for expansion plans. Private equity funds are investment firms who invest money in established firms with stable operations and revenues to fuel their expansions. They take a large stake in the company and stay invested until the companies where the investment is made offer IPO in which case they liquidate their investment by selling the stakes