Micro-VC

Micro-VC , not exactly a revolutionary idea , has been discussed here . Basically, it is VC for new micro-ventures. One could define these ventures more specifically, but generally these would be profitable in a duration of 1 year , risk would be lower than in traditional VC , technology may not be cutting edge , and business model would be relatively more stable. An example - a real time price tracking mechanism for buyers/sellers of agricultural produce in a large district level mandi(market). Or an urban transport solutions system for white collar workers in a large metropolitan area. These ventures may never get acquired or publicly listed , the means a traditional VC depends upon for rewards, but they would have a greater chance of consistent profitability.

The government , for its part, could give generous tax concessions to the profits made by the micro VC firm and give them preferential treatment in fund raising from public sector financial institutions.

I think it has some relevance for a country like India where substantial entreprenurial energy could be unleashed with easy availability of fair-risk capital to the masses.