Abstract:
Venture Capital (VC) has grown significantly during the 1990s and is being associated with improved firm performance. Most recently venture capital has taken roots and is expanding worldwide including new fast developing markets such as China, India and Thailand. The study is carried out owing to the fact that despite of importance of venture capital as mode of financing, it is a young research field, at least in Pakistan. The study has analyzed the importance of venture capital, its role in developing countries and developments made in Pakistan in the industry. The study has not taken into consideration the political aspect of the topic. The researchers have identified media, telecommunication and technology sector of the economy where Venture Capital has a great potential. The researchers have also identified some issues in the Venture Capital Industry and have made recommendations to the policy makers for promotion of the industry in the country.
