Hello Start Ups : Contracts For An Organization Are Not Simply "Accessories" But "Necessaries"

This is an era of startups and entrepreneurs. Our prime minister Mr. Narendra Modi also has promoted the idea of starting your own business instead of running after jobs. This has not only opened up new avenues of income but has also reduced the anxiety of getting a job.

 

The new gen entrepreneurs are creative and capable enough to inculcate their ideas into business entities, but real challenge emerges when they deal with the external environment. Only having a creative idea and having capability of starting a business, are not sufficient ingredients for establishing the business for long run. In today’s cutthroat competitive environment, also knowing threats to the business should be a priority of startups, which most of them miss out somehow. It’ll not be wrong to say that a large number of startups are either suffering major financial losses or have reached at the verge of shut down in their premature stage for simply not being aware of the upcoming complications and not having a strong support system in place beforehand to protect themselves from those complications. 

Amongst many of the reasons “one” is completely ignoring the importance of signing of agreements, either the agreement has not been signed between the parties or the agreement has not been reviewed properly before signing. A small clause or sub clause or missing out a small clause or sub clause in the agreement can be a reason enough for a major setback. Needless to say that to avoid such possibilities the entrepreneurs need to have a legal team in place to support and protect the legal rights of their business, after all it takes numerous sleepless nights, tirelessly long working hours and lot of efforts to pull the business to a certain level.

Let’s accept the fact that regardless the size of your business, for nurturing it as an entrepreneur your focus must be on the core business activities and to deal with any unwelcome complication you must have your legal team in place beforehand. Practically also its not possible for an entrepreneur to know all laws or all legal remedies. Your legal team parallelly keeps an eye on and protects you from all possible external and internal business threats, and helps you minimize your losses.

To know what those areas and means are where your legal team extends its support and helps you, stay connected with us. 

 

upcoming articles:

Hello Startups : How your legal team protects legal rights of your business and helps you minimize the probable losses.

Hello Startups : What’s your best brand strategy of today !

 

Hello Startups : Deal smartly with unknown threats 

 

For personal enquiries/queries you may either DM us or may connect with us at connect@draftncraft.com

Author 

Surabhi Rastogi (Advocate)

Associate Partner- Draft n Craft Law Firm

#contracts #agreement #startup #india #startupinindia #corporate #commercial #draftncraftlawfirm #draftncraft #dnc #indiancorporatelawfirm #corporatelawfirminindia #lawfirm #international

INDIA TO BECOME A MANUFACTURING HUB FOR SEMI-CONDUCTORS INDUSTRY

The Covid-19 pandemic has spared none, being one of the deadliest in the 21^st Century.  The pandemic has led to a steep fall in need of the goods and services all across the globe. Trades amongst many countries has been on a standstill for more than a year. However, China being one of the major exporter of goods and services across the globe has suffered a big jolt as a result of the Covid-19 pandemic. As a result, many countries are shifting their manufacturing bases out of China, which has been a boon for countries such as India, as it has resulted in opening new doors for trade of various goods and services.

Semi-Conductor Industry which is considered to be one of the biggest industry across the world, has been one of the worst hit industries due to this pandemic. China accounts for manufacturing semi-conductor to the extent of 24% followed by Taiwan at 21%, South Korea at 19%. There has been a worldwide shortage in semi-conductors (chips) due to the pandemic. As we understand the Importance of semi-conductor in various industries electronics, auto-mobile, tele-communication etc, so most of these industries are struggling to keep with up the consumer demands amid acute shortage of chips throughout the world.

Keeping in view the global shortage and in furtherance of the vision of Aatmanirbhar Bharat and positioning, India as the global hub for Electronic System Design and Manufacturing, the Indian Government has approved the comprehensive program for the development of sustainable semiconductor and display ecosystem in the Country. The program will usher in a new era in electronics manufacturing by providing a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design. This shall pave the way for India’s technological leadership in these areas of strategic importance and economic self-reliance.

Semiconductors and displays are the foundation of modern electronics driving the next phase of digital transformation under Industry 4.0. Semiconductors and display manufacturing is very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments. The program will give an impetus to semiconductor and display manufacturing by facilitating capital support and technological collaborations.

The programme aims to provide attractive incentive support to companies/ consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT), Semiconductor Design.

Following broad incentives have been approved for the development of semiconductors and display manufacturing ecosystem in India:

Semiconductor Fabs and Display Fabs: The Scheme for Setting up of Semiconductor Fabs and Display Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to applicants who are found eligible and have the technology as well as capacity to execute such highly capital intensive and resource incentive projects. Government of India will work closely with the State Governments establish High-Tech Clusters with requisite infrastructure in terms of land, semiconductor grade water, high quality power, logistics and research ecosystem to approve applications for setting up at least two greenfield Semiconductor Fabs and two Display Fabs in the country.

Semi-conductor Laboratory (SCL): Union Cabinet has also approved that Ministry of Electronics and Information Technology will take requisite steps for modernization and commercialization of Semi-conductor Laboratory (SCL). MEIT will explore the possibility for the Joint Venture of SCL with a commercial fab partner to modernize the brownfield fab facility.

Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT Units: The Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs and Semiconductor ATMP / OSAT facilities in India shall extend fiscal support of 30% of capital expenditure to approved units. At least 15 such units of Compound Semiconductors and Semiconductor Packaging are expected to be established with Government support under this scheme.

Semiconductor Design Companies: The Design Linked Incentive (DLI) Scheme shall extend product design linked incentive of up to 50% of eligible expenditure and product deployment linked incentive of 6% - 4% on net sales for five years. Support will be provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design and facilitating the growth of not less than 20 such companies which can achieve turnover of more than Rs.1500 crore in the coming five years.

India Semiconductor Mission: In order to drive the long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent “India Semiconductor Mission (ISM)” will be set up. The India Semiconductor Mission will be led by global experts in semiconductor and display industry. It will act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

India is already on footsteps to become a global manufacturing hub for semi-conductors industry with Vedanta leading the way, having already proposed a 3.5 billion dollars investment for setting up of a semi-conductor industry. The Indian Government expects heavy investments to start coming from next financial year in the country. India is geographically very well located on the world map which will give many companies access to its diverse resources and which will further help India become a global manufacturing hub. The pandemic has led to many companies as well as industries moing out from China as it is no longer considered ideal for business, with this India has an opportunity to become a global manufacturing hub for Semi-conductors.

Comprehensive Fiscal Support for Semiconductors and Electronics

With the approval of the programme for development of semiconductors and display manufacturing ecosystem in India with an outlay of Rs.76,000 crore (>10 billion USD), Government of India has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods. Incentive support to the tune of Rs.55,392 crore (7.5 billion USD) have been approved under PLI for Larges Scale Electronics Manufacturing, PLI for IT Hardware, SPECS Scheme and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme. In addition, PLI incentives to the quantum of Rs.98,000 crore (USD 13 billion) are approved for allied sectors comprising of ACC battery, auto components, telecom & networking products, solar PV modules and white goods. In total, Government of India has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.

In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. The approved program will propel innovation and build domestic capacities to ensure the digital sovereignty of India. It will also create highly skilled employment opportunities to harness the demographic dividend of the country.

Development of semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper integration to the global value chain. The program will promote higher domestic value addition in electronics manufacturing and will contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.

Author(s) 

Rakesh K. Sharma (Advocate)

Founding Partner- Draft n Craft Law Firm

Owner- Draft n Craft Legal Outsourcing Pvt. Ltd.

& 

Rohit Taneja (Advocate)

Associate Partner- Draft n Craft Law Firm

#semiconductor #semiconductorindustry #semiconductormanufacturing #aatmanirbhar #bharat #aatmanirbharbharat #display #ecosystem #technology #capitalinvestment #investment #FDI #foreigndirectinvestment #india #incentivesforsemiconductor #entrepreneur #consultants #startups #gdp #export #draftncraftlawfirm #draftncraft #dnc #lawfirm #indian 

Founder Partner Mr. Rakesh K. Sharma elected as CGC member, Legal Sector SEPC

#draftncraft #draftncraftlawfirm #draftncraftlegalprocessoutsourcing #dnc #legal #lawfirm #lawyer #lawfirms #supremecourt #india #export #delhi #servicesexportpromotioncouncil #sepc

 

Another feather added to the hat of Draft n Craft. 

Lately SERVICES EXPORT PROMOTION COUNCIL (SEPC) had undergone the election where Mr. Rakesh K. Sharma, was elected as the CGC Member- Legal Sector SEPC.

 

SEPC is an Export Promotion Council set by Ministry of Commerce & Industry, Government of India. It is an apex trade body which facilitates service exporters of India. As an advisory body it actively contributes to the formulation of policies of Government of India and acts as an interface between the Services Industry and the Government.

 

Mr. Sharma serves as a practicing lawyer at Supreme Court of India & High Court of Delhi. He is the Founding Partner of Draft and Craft Law Firm and the Founder of Draft n Craft Legal Outsourcing Pvt. Ltd.

 

Mr. Sharma says “I can see legal sector of India growing exponentially in next two years so as to match any international legal arena.”

 

Draft n Craft Law Firm is a premier full-service corporate law firm headquartered in New Delhi, India. Our focus is on providing strategic solutions to clients through distinctive, holistic approach legal expertise based on decades of experience of our professionals.

 

Draft n Craft is a premier legal outsourcing firm which offers its legal and paralegal support solutions to law firms, corporate and in-house legal departments throughout the United States. We do not measure our success by comparison, but by our achievements. The strength and openness in our relationship help our clients to maximize the benefits of outsourcing. We provide customized solutions to each of our clients.

#draftncraft #draftncraftlawfirm #draftncraftlegalprocessoutsourcing #dnc #legal #lawfirm #lawyer #lawfirms #supremecourt #india #export #delhi #servicesexportpromotioncouncil #sepc 

Draft n Craft Law Firm

www.draftncraft.com

 

Draft n Craft’s Support in Wage Discrimination Lawsuits

Wage discrimination lawsuits are very common and frequently seen in the US legal system. Employers who do not pay overtime or appropriate minimum wages or deny rights of the workers actually violate state and federal laws such as the Fair Labor Standard Act (FLSA). They may not be necessarily violating the rights of one or two employees but for many of them. For violating labor laws like FLSA, a wage and hour lawsuit can be filed against the employer. Such a lawsuit can become a class action lawsuit if many such workers who have faced similar harm come together and sue the same employer for their rights.

Draft n Craft, one of the leading legal support companies based in New Delhi, India, has been continuously supporting the legal industry with a variety of its services that allow law firms to save a lot of time and money without compromising on the quality of the work.
 

Usually, deposition summaries, legal research and writing of different legal documents are frequently used during the different stages of the case. But time and again there are a plethora of different documents which need to be organized and prepared in way that they are presentable and serve their purpose. For instance, one of the clients of Draft n Craft, an employment law firm dealing majorly in class action litigation cases, sent a huge set of documents to be used to determine the overtime owed by the employers to the employees. The team at Draft n Craft was provided with the pay slips along with the hours worked [time cards] of each employee. Based on the rate of pay and the details provided, the team at Draft n Craft quickly put together a spreadsheet to evaluate the actual overtime owed by the employer versus the amount already paid by the employer to the employee. This helped the law firm to move forward on the case at a faster pace and get the desired results.
 

Serving more than 200 clients in the US, Draft n Craft is one of the most promising legal outsourcing company based in New Delhi, India. The company offers variety of legal, paralegal and administrative/secretarial support to law firms, in house legal departments and other legal vendors. The services offered by the company not only save time and money but also help improving attorney-paralegal ratio of law firms. For more details about the company and its services, visit www.draftncraft.com or send an email to connect@draftncraft.com

Post 

Changing Roles and Increasing Importance of Legal Support Staff

Paralegals, legal assistants and legal secretaries are collectively known as legal support staff in law firms. They work very closely despite of having different roles and job responsibilities. Majority of the tasks performed by paralegals and legal assistants are billed to the clients by law firms whereas legal secretaries perform secretarial tasks which are not billable. In past, technological advancement has greatly affected the roles of legal support staff in law firms. Work efficiencies are improved which made law firms reduce the support staff. They shifted their focus to improve the attorney-paralegal/assistant ratio. Remaining support staff who used to assist one or two attorneys before, started assisting more and secretaries were involved in billable tasks thus improving the overall attorney-support staff ratio of the firm.

These support staff work directly with attorneys on a given case. They know ins and outs of the case. Attorneys look up to them for any case related update before client meetings. Still they perform number of tasks which can be managed by or outsourced to a specialized legal support company. Many of the law firms are working with companies like Draft n Craft which provide variety of legal support services to law firms. Now support staff do not get involved in researching and finding cases on Westlaw andLexisNexis, preparing case summaries, indexing thousands of discovery documents, preparing spreadsheets, summarizing depositions and drafting of various legal documents. They just coordinate with the legal team of Draft n Craft and supervise their work. This arrangement allows them to free up their time and focus on more substantive tasks. At the same time law firms enjoy a great deal of cost savings and improved overall efficiency that bring more satisfaction for clients.

Established in 2008, Draft n Craft has been in existence for more than 8 years and earned a reputation of being a quality provider of legal support to US law firms, In house legal departments and other legal vendors. Not only this, but the company keeps on spreading awareness about legal outsourcing and its benefits by organizing legal conferences and seminars at regular intervals.

For more information about services, turnaround time and rates, visit www.draftncraft.com or send an email at connect@draftncraft.com

How Important Is Legal Research in Your Practice?

Legal Research can be a complex and time-consuming process for attorneys and paralegals. A small negligence can cause major damage to the firm as the outcome of the research leads to legal decision making. The fundamental step in research is to find the appropriate cases governing the issues in question but the ability to analyze what is found and reach a conclusion based on it is also equally important. Usually legal research is known to take much time and effort, and access to online legal research databases such as LexisNexis and Westlaw can be costly. Consequently, law firms and other attorneys turn to companies like Draft n Craft to outsource their legal research needs.

Usually legal research is known to take much time and effort, and access to online legal research databases such as LexisNexis and Westlaw can be costly. Consequently, law firms and other attorneys turn to companies like Draft n Craft to outsource their legal research needs.

We, at Draft n Craft have a team of immensely talented attorneys who are trained on the U.S. judicial systems. Our dynamic team of attorneys and paralegals come from various backgrounds and share their rich experience in carrying effective legal research for our clients. They efficiently sift through data using the different research tools available with us likeLexisNexis. Following are some of the key highlights of our legal research service.

• Proficient, precise, and comprehensive legal research for each of the different U.S. jurisdictions
• IRAC (Issue, Rule, Application, and Conclusion) Memo with legal analysis of issues presented by the client’s set of facts
• Annotated summary of Shephardized cases relevant to the client’s issue(s)
• Conclusion advocating the clients’ legal position
• Available instantly on demand, predictable and fully reviewable
• Quick turnaround time

If you are interested in using our legal research service or have any query, please send us an email at connect@draftncraft.com . One of our experts will get back to you to understand and discuss your requirements.

Depositions under Federal Rule of Civil Procedure Rule 30

A deposition is an out of court oral testimony of a witness under oath. Such recorded testimony by a witness is later reduced to writing for use in the court or for the purposes of discovery. Depositions are governed under Rule 30 of the Federal Rules of Civil Procedure (FRCP).

The purpose of a deposition is dual. Firstly, it enables one to extract information which a witness knows and secondly, to preserve such witness testimony.

An individual deponent (or witness) receives a notice or subpoena to appear at the deposition to answer questions about any personal knowledge related to the case.  They are often asked to bring documents with them to the deposition.  Depositions enable a party to know in advance what a witness will say at the trial.  Depositions can also be taken to obtain the testimony of important witnesses who cannot appear during the trial.  In that case, they are read into evidence at the trial.  Often a witness’s deposition will be taken by the opposing side and used to discredit the witness's testimony at trial if the trial testimony varies from the testimony taken during the deposition.  The entire deposition is preserved word-for-word by a court reporter, who is present throughout the session. A transcript is produced at a later time. 

Under FRCP 30(d)(1) and its state counterparts, a deposition normally must take place for no longer than seven hours a day for each deponent, unless otherwise stipulated by the parties or ordered by the court.  This means that the deposing party who knows that a deposition will go longer than one day must either ask the deponent to stipulate to more time or if the deponent is uncooperative, go before the court and file a motion for a longer deposition.

Be it a personal injury matter or a medical malpractice case, deposition is an essential tool for discovery because it brings out many hidden facts on the front and helps attorneys to reach out to the basic issues of the case.  It is a stage which brings an opportunity to both parties to see the case from something more than mere typewritten papers.  A properly recorded deposition goes a long way in bringing the case to the winning decision on behalf of a client.  When depositions run into 100s and 1000s of pages and a case requires many witnesses to be deposed, it becomes very difficult to keep track of all of them.  Instead of getting yourself involved in number of pages and preparing your notes out of that, a much preferred choice would be to summarize the deposition.  A deposition summary is a written synopsis of a deposition that condenses the question and answers to a succinctly written, explicable format.

Deposition summaries have consistently been outsourced to third-parties that deal in deposition summarization.  While the business model for outsourcing deposition summaries is established, the ethical guidelines for such outsourcing have only recently been elaborated.  Outsourcing legal services, including deposition summaries, has been approved by the American Bar Association (ABA), state and local bar associations and the National Court Reporters Association (NCRA).  The NCRA has further held that while a court reporter may not summarize a deposition transcript, there is no restriction for a court reporting company to partner with a deposition summary provider.  That is stated in Advisory Opinion 32 of the NCRA (1997).  Advisory Opinion 32 of the NCRA (1997) deals only with the type of summary whereby the neutral, unbiased reporter and keeper of the record prepares an "objective" summarization of a deposition which he or she personally reported.  The word "summary" implies abbreviated version or an abstract of what took place.

The purpose of a deposition summary is to accurately, objectively, and concisely summarize a deponent’s testimony into a useful reference document for a reviewing party.  The deposition summary provides an outline of the deposition, enabling a reviewing party to quickly gain a general understanding of the deposition.  The deposition summary should include only relevant information extracted from the deposition.  The deposition summary is not intended to replace a full reading of the deposition transcript.

It is used for the following purposes:

1. Describes a deposition for insurance adjuster or client
2. Refreshes witness’s recollection before the trial or hearing
3. Helps prepare for other depositions in the same case
4. Aids in preparation for additional discovery
5. Assist lawyers not in attendance at deposition
6. Enables lawyers to better prepare evidence and motions
7. Serves as a trial preparation aid
8. Summarizes testimony for jurors at the trial

About Draft n Craft

Draft n Craft offers high quality and cost effective Deposition Summary services.  Our work is known for accuracy, reliability and comprehensiveness.  We offer an excellent, efficient and reliable team that is a less costly alternative to preparing the summaries in-house.  We carefully reduce testimony to facts; accurately record dates, figures, names, and exhibits; give a record of key events and actions; eliminate extraneous information; and organize subject matter into coherent paragraphs.  We summarize depositions in all types of civil cases, ranging from medical malpractice, personal injury and construction to employment, insurance, and intellectual property.  Our attorneys, along with expertise in litigation have a good command over English writing skills so as to produce well analyzed and well-articulated summarized deposition transcripts.  Our team is trained to provide the Deposition Summary services in various formats suiting the requirements of our clients.

Team Draft n Craft Wishes you all a Merry Christmas & a Happy New Year

SEVEN TRICKS OF HASSLE FREE INVESTMENTS

Someone has rightly said “playing with money helps to grow”. This saying has actually encouraged people to invest in different ventures. The stumbling block in investment had been the risks associated with it. The volume of investments made globally in the last four years has been more than $2.27Bn till 31st March 2015 but it could have easily been twenty times of this amount. If one wants to avoid hassles in making such investments, they should follow the seven star formula of investing:

1. KNOW YOUR INVESTMENT SEEKER: The first cardinal rule of making an investment is to know the organization looking for investment and the people behind it. The structure and brain of an organization is the first guiding principal for making an investment. No one is likely to use the hit and trial method while investing, rather an investor would be prompted by the spirits behind the organization. An encouraging factor is to identify and understand the brain behind the seeker, their entrepreneurship and the ability to grow.
2. CONNECTING WITH YOUR INVESTMENT SEEKER: Once a general understanding about an investment has been achieved then the next goal should be to develop a connection with the seeker. After the exchange of general mails, meetings should be scheduled - telephonic or personal. A regular touch before making an investment is a must, as this would assist in getting first hand information whereby the seeker would share his project and other details. The connectivity between the investor and seeker has to be pre-established before entering into a relationship.
3. EVALUATING THE PROJECT/INVESTMENT SEEKER: Every startup or the innovator considers one’s project as enterprising & very profitable but that requires a strong evaluation from the perspective of an investor. An investor needs to know the worth of the project viz. popularity, technical feasibility, business growth, local or global.  Similarly, an overall review of the people behind the project needs to be made which means identifying their knowledge, background as well as financial background. In case of a seeker involved in a previous project which failed, extra caution needs to be taken. On the other hand, a successful seeker would attract more and sound investors. The risk gets minimized once a decision is taken after having concluded due diligence on the project as well as on the investment seeker.
4. DEFINING YOUR GOAL: Every investor needs to know the goal one aims by such investment. It may not always be necessary and important to see growth in revenue; rather it may be the fame & reputation of being part of a very successful project. Similarly, at other times one may not look out for immediate returns but returns over the passage of time. Once a goal has been determined then milestones need to be fixed. The goal should be understood as a period and gain of investment and not merely return of the investment. 
5. LEGALIZING THE RELATIONSHIP: No relation co-exists for long time unless supported by a well reasoned legalized document. Investors and seekers relation does not stand long where it is based upon oral understanding or weak documents. Gone are the days when documents were created just for the sake of remembrance, today the documents are created to strengthen the relationship between people/organization. A well defined and understood agreement not only encourages people to work together but equally discourages them to fall prey of unnecessary risks. Every investor must start their relationship with the seeker depending upon documents like Letter of Intent (LOI), Founders Agreement, Confidentiality Agreement, Mutual Non-disclosure agreement, Term sheets, Shareholders agreement etc. 
6. UNDERSTANDING THE FLOW OF RELATIONSHIP: As an investor one would need to know what information and at what level the same would be shared by the seeker to the investor. The expectation as well as the obligation between the investor and seeker needs to be defined with clear understanding for mutual benefits. The flow of relationship has to both ways and not merely one way. A standard of charter or report can be defined to encourage transparency which would strongly glue them together. The compatibility between two increases with defined flow of relationship and ideally reduces the fears of an investor and helps in the strong growth of relationship.
7. TAKING CALL TO QUIT FROM THE PROJECT: A nomadic journey never lands a person anywhere, rather a defined strategy to achieve a destination has more probability of being successful. Once a goal has been setup then one should be clear to take calls on the exit or review the goal. In certain cases investors prefer periodic exit from the project rather than the same being dependent on financial gains. One needs to take call on the exit from a project rather than repent at the end, especially when the project does not look to be going. The investor will have a clear understanding as to their achievement in case they are open for review and exit from the project instead of bound with time limitation.

INVESTMENT IN INNOVATION – A GIVING OR MISGIVING

Investment is like soil which requires care and nutrients to help plants to grow. Sometimes it acts as a soft bed and on other occasions it works as a catalyst. In financial terms, investment means financial input along with other support directly connected with the growth of a company. It is well said “demand and supply determine the economic growth”. This fact exactly explains the flow of investments in innovation industry. An innovation can be described as something new which is majorly useful but did not exist till sometime back. An innovation may happen in any sector or industry viz. IT, FMCG, Education, Automobiles, Communication.

Investment in an industry may depend upon different factors which can be grouped as:

PROSPECT OF GROWTH: The probability of an investment is directly proportional to the profitability of an innovation. An innovation having an early success is always likely to attract huge investments. In the recent past, we have seen that companies that have come up with new and innovative concepts like Amazon, Flipkart, Snapdeal, Uber, OLX, Quikr, Paytm, have attracted huge investments. Investors are always attracted to invest in innovations where short term gains can be seen. Not only that, investments can also be seen in industries such as fashion, IT and Real Estate.  The concept of investment remains the same - whosoever invests money, looks for growth. An investor takes a call on the period of investment which in turn determines the expected returns. Largely, one can say ‘Investments In Innovations’ go hand in hand but at the same time the investment are equally made in other running industries. Investments were made in more than 662 start ups in the first nine months of 2015 i.e. till September 2015 which means - 2.42 deals a day.

QUANTUM OF FUNDS: The requirement of fund determines the level of investor willing to enter into an investment. It has been a common practice that an investor makes an investment in different scales depending upon the requirement of the start up. Sometimes a big investor invests in startups with low investment and then takes up further investment to scale its growth. In countries like India, startups have boomed and attracted huge investments. In the first half of 2015, startups gained investments of more than $3.5 billon. As per the number of investors in the total deals are concerned, nearly half of the deals of startup investments were for less than $20,000. A big volume of private equity has been invested in such deals. Apparently, startups looking for smaller funds attract more investors rather than startups aiming for big funds.

LOCATION: The location of a startup plays a pivotal role in attracting investments. This further determines the growth and the relationship between the two. Remotely located startups grow only if they are attached to a particular sector like agriculture, else they struggle hard to seek funds. The growth of startups has apparently been more in metropolitan cities.

RISK: The fear of losing investment is balanced by the allurement to multiply the investments. Investors look out for a balance between the two. Investment is indirectly proportional to risk and directly proportional to allurement. No one invests in projects where risk of losing investment is higher. Therefore, investors prefer to draw a line where risk can be evaluated for them to take decision about investment. The chances of investments being at peril have risen due to the way startups are mushrooming. With such an increase in the number of startups, an optimum level is likely to be reached. Investors have to become more cautious.

ACCESSIBILITY: Startups have boomed in countries like India at places like Indian Silicon Valley i.e. Bengaluru and at the best in big metropolitan cities like Delhi, Mumbai. Investors are equally available in other areas where the startup projects are coming up. In all events, the close interaction between investors and startups is always preferred. The more accessible a startup is to the investor, the more viability of investments and the higher chances of growth.

FASCINATION: An unexpected increase is happening where every entrepreneur is contemplating or has contemplated to get into startup venture. Similarly, every investor is aiming at one or the other startup to multiply the investments. The boom of new ventures with upcoming projects like e-commerce, health, delivering consumer services/goods, has magnificently shown a rosy picture to the investors which seems like a fascination. On the other end the lackadaisical of investment opportunities in real estate, yellow metal and share market has further widened the scope of investments in startups.