Prominent investors like Vijay Kedia and the late Rakesh Jhunjhunwala’s family are increasingly turning their attention to start-ups, driven by the dynamic potential these ventures offer compared to traditional equities. This shift is fueled by several factors:
Source:- news 18
High Growth Potential: Start-ups often operate in emerging sectors with exponential growth prospects. Investing early in innovative companies can yield substantial returns, as seen in sectors like technology, fintech, and biotech.
Source:- news 18
Diversification: For seasoned investors with substantial portfolios in conventional markets, start-ups provide a means to diversify. This diversification spreads risk and taps into new, potentially lucrative markets that are not correlated with traditional stocks.
Changing Market Dynamics: The traditional stock market, though lucrative, has shown volatility and slower growth in some mature sectors. Start-ups, on the other hand, are agile and can quickly capitalize on new trends and consumer demands.
Support and Influence: Experienced investors can leverage their industry knowledge and networks to guide start-ups towards success, creating value not just as financiers but also as mentors.
Philanthropic and Legacy Interests: Investing in start-ups also aligns with the desire to support innovation and entrepreneurship, contributing to economic growth and societal advancement.
This strategic pivot underscores a broader recognition of the transformative potential embedded in nascent companies.
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