Practicing Success
Practicing Success
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| Bhushan and Vinay were pursuing Electrical Engineering from a prestigious engineering college. During their third year they developed a solar LED bulb which can be used indoors. The bulb had a small panel which had to be charged at a stretch for 10 hours in the sun and it would last for 200 hours of usage. The idea was risky as there was a possibility that the market might not accept such a product, but if they do so, then, there would be a revolution in the power industry as it would lead to saving of power in every household. The prototype was made but to manufacture and distribute the same, they required around 5 Crores. Both Bhushan and Vinay approached Mittal capitals who were ready to invest in their business in exchange for equity stake and a pre-decided percentage of profits in the firm. After a month they started their business Bright and Shine enterprise. The business was a success and made a profit of Rs. 25 lakhs at the end of the first year. Identify the source of finance from the above case study. |
Venture Capitalist Angel Investor Banker Trade creditor |
| Venture Capitalist |
| a venture capitalist invests in a firm in exchange for an equity stake in the business. |
