Investment Banking & Venture Capital Market Research Reports & Industry Analysis

Investment banking is trading securities for cash or the promotion of securities. An investment bank may also deal with mutual funds, hedge funds, pension funds and members of the public who invest. Trading securities for cash can also be referred to as market-making or facilitating transactions. Promotion of securities may include underwriting or research. These two separate activities may be referred to as the “sell side” and the “buy side.”

Investment banking is separated into two different functions. One function of an investment bank deals with private or insider information. This may not be made public. The other function of the investment bank is the area which deals with the public information. An example of this information might be stock analysis.

Venture capital is funds which are provided for the use of a start up company. Traditionally, these start ups are very early stage and considered high risk and high potential. Also, venture capital is normally provided to start up companies which have an innovative business model or technology. Software and biotechnology are two common areas of business which utilize venture capital. The party investing the venture capital makes money by owning equity in the start up company. These start up companies are often too small raise capital on their own or obtain a bank loan. Venture capital is private equity.

As venture capital is risky, the return is high. One benefit in exchange for the high risk is that venture capitalists may get a great deal of control over company decisions. Of course venture capitalists also usually own a large portion of the company and its value.

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Investment Banking & Venture Capital Industry Research & Market Reports

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