| We’ve all heard the story before, the one about | | | | provide mentoring and advice, along with a few |
| the large western company looking to cut costs and | | | | valuable business contacts. These early stage |
| doing so by outsourcing some of its work to India. | | | | investors seek to turn entrepreneurial ideas into |
| But behind the scenes, another movement is taking | | | | profitable new companies, where they can potentially |
| place. | | | | help generate more venture capital and grow the |
| India is fast becoming a place where innovative ideas | | | | company further. |
| arise, and where entrepreneurial ideas originate. No | | | | But its not just local investors taking notice. With the |
| longer just letting big name companies set shop in | | | | rapid rise of globalisation, and factors such as the |
| their country, many young entrepreneurs want to be | | | | world wide web, many foreign investors have |
| the ones who establish their own home grown brand | | | | noticed that India may be a promising place in which |
| within their own country. And unsurprisingly, they | | | | to invest. Many established businesses have looked |
| want to expand abroad and even go global. | | | | toward India for investment opportunities, and |
| Along with the entrepreneurial boost, India’s | | | | companies like Google have become active angel |
| economy has also recently produced many wealthy | | | | investors themselves, keeping a close eye on the |
| individuals. Many of these are looking to help other | | | | latest innovations. |
| local entrepreneurs follow similar dreams. Known as | | | | According to the India Venture Capital Association, |
| “angel investors” or “business | | | | private equity and venture capital has felt a sharp |
| angels” – they have formed investment | | | | increase over the past three years, with 2007 |
| groups, similar to how business angels operate in the | | | | investment totals close to six times the total amount |
| US and Europe. Groups such as the Indian | | | | of investing done in 2005. As a result, global sites like |
| Investment Network have many investors seeking | | | | the Angel Investment Network have set up a |
| to invest in entrepreneurs based in India. | | | | network in India, looking to help Indian entrepreneurs |
| With experience and exposure to the market that | | | | connect with business angels and raise venture capital |
| the entrepreneur usually lacks, business angels can | | | | via potential investors from all around the world. |