In India, venture capital (VC) is increasingly becoming a vital funding source for Micro, Small, and Medium Enterprises (MSMEs), traditionally reliant on banks. With a significant role in India's GDP (29%) and employment (110 million), MSMEs faced capital challenges, prompting VC interest. Fireside Ventures, SIDBI Venture Capital, Aavishkaar Capital, and others are now eyeing profitable family-run enterprises for investment. VCs recognize the limitations of self-funded growth for MSMEs, offering not just capital but mentorship. Koskii and Wonderchef exemplify successful VC-backed MSMEs transitioning from traditional family businesses. VCs are now leaning towards stable, sustainable businesses, marking a shift from the past focus on capital-intensive startups. Despite government schemes and loan options, entrepreneurs find these avenues challenging, emphasizing the need for private investment for rapid, scalable growth.