There are various restriction imposed on company form for availment of loan or working capital to run a business. Hence, through the medium of Venture capital, company having Innovative ideas, growth oriented start ups etc may benefitted to run its business smoothly by exchange of equity.
source https://www.caclubindia.com/articles/venture-capital-emerging-concept-44841.asp
source https://www.caclubindia.com/articles/venture-capital-emerging-concept-44841.asp
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