How venture capitalists behave

Book review of The Economics of Venture Capital Firm Operations in India

Start-ups and “Unicorns” have caught the Indian imagination, finally. Governments at central and state levels are enthusiastically holding conferences to promote them. Universities, the Indian Institutes of Technology and the Indian Institutes of Information Technology have webinars showcasing their enthusiasm for them. Policy-makers see start-ups as a way to create employment among their talented youth and are eager for international (mainly American) venture capital (VC) and private equity firms to come and invest in their country or state.

And though there have been many books written about the venture capital phenomenon, most are written in the breathlessly enthusiastic tone of “Come,