BharatNotes Venture Capital
noun (uncountable)Usage in a UPSC answer
India's emergence as the world's third-largest startup ecosystem by unicorn count — with over 115 unicorns valued collectively at more than $350 billion as of 2024 — owes substantially to the venture capital infrastructure built since the mid-2000s, anchored by SEBI's Alternative Investment Fund framework and supportive Startup India policies.
Synonyms
Antonyms
Word Family
venture capitalist (noun), venture-backed (adjective), VC (acronym), angel investment (related phrase), private equity (broader category)
Root
Latin ventura = that which is about to happen, chance event (from venire = to come); capital from Latin capitalis = relating to the head (caput), principal sum
Etymology
The word 'venture' derives from the Latin ventura (fortune, chance), reflecting the speculative nature of such investment. Venture capital as a formalised industry emerged in the United States post-World War II — American Research and Development Corporation (ARDC), founded by Georges Doriot in 1946, is considered the first modern VC firm. In India, SIDBI established the first formal VC fund (TDICI) in 1988, and the sector exploded after the 2016 Startup India initiative and the subsequent unicorn wave.
Memory Hook
VENTURE CAPITAL: the word 'venture' means ADVENTURE — a risky journey. VC investors take an adventure with early-stage companies, betting on the journey before the destination is known. Most ventures fail, but one Zomato or Flipkart pays for all the others.
Seen in UPSC Question Papers
- Prelims 2025 — Capital Markets
- Prelims 2025 — Financial Markets
Real UPSC previous-year questions whose text uses “Venture Capital” — proof this word earns its place on your list.
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