There has been  a lot of investment activity going in for business start-ups.The Investment can be through various sources depending on the stage of the idea and product development
 

• Seed Investor 
• Angel Investor
• Venture Capitalists
   

Venture Capital (VC)Funds

   Over the past few years there has been intense activity amongst entrepreneurs proactively seeking out venture capital funds. It is interesting to note that for every one investment which is funded by a VC, anywhere upto one-hundred ventures are not funded by the same VC.

Venture Capitalists are driven by the profit motive. In effect the VC and the entrepreneur are really on the same side, since VC's do not seek to profit through arbitrage. VC funds invest in the company, with a view to build and facilitate growth. At the time of exit, leaving behind an ongoing concern painstakingly built over 3 to 4 years is a matter of pride for a VC fund. Apart from ensuring returns for its investors such a company serves as an example of the caliber of the VC fund also; a reference of sorts of a good track record. Hence, with a view to de-risking the investment most VC's tend to follow a similar set of guidelines, written or otherwise.

The evaluation by the VCs is done on the basis of various factors :
 

• Strength of Idea
• Team
• Projected Cash Flows
• Interest shown 
• Balancing of his own Investment Portfolio
   

For comprehensive information, browse through Dr A K Mishra's web resources on venture capital in India.
 

Some helpful links:

Indiainfoline - Detailed information about venture capital

JumpStartup - A list of venture capitalists in India  - A banking portal with information about venture capital

IndiaInnovates.com - A one step portal for professionals for development of innovations from grassroots level to a successful business venture.

National Innovation Foundation - Setup by Deptt. of Science and Tech., GoI to recognize and assist grassroot level innovators.

Sristi - NGO for ecology related entrepreneurship plans (Ecopreneurs).