Venture Capital Fund

A Venture Capital (VC) Fund is a pooled investment vehicle that raises capital from institutional investors, family offices, and high-net-worth individuals to invest in early-stage, high-growth startup companies in exchange for an equity stake. VC funds typically take a 7–10 year investment horizon, expecting most returns to come from a small number of breakout portfolio companies. In India, the venture capital ecosystem has grown significantly, backing startups across fintech, edtech, healthtech, and SaaS. SEBI regulates VC funds in India under the Alternative Investment Fund (AIF) framework as Category I AIFs.