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Is Venture Capital different from Investment Banking

A Venture Capital firm invests money in promising businesses and start-ups that have the potential to grow if the right investment is provided. These venture capitalists undertake a high risk of losses, but also a potential of high rewards. Venture capital firms work on bridging a fruitful product or service to the market.

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Is Venture Capital different from Investment Banking

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  1. Is Venture Capital different from Investment Banking? www.avendus.com/india

  2. Venture Capital A Venture Capital firm invests money in promising businesses and start-ups that have the potential to grow if the right investment is provided. These venture capitalists undertake a high risk of losses, but also a potential of high rewards. Venture capital firms work on bridging a fruitful product or service to the market. www.avendus.com/india

  3. Investment Banking Investment Banking firms on the other hand work on raising or creating capital for their clients. They adopt various methods to do this like the sale of securities, underwriting debt and equity securities, mergers and acquisitions, reorganization and more. Investment bankers also offer financial consulting and advisory services to their clients  www.avendus.com/india

  4. Main Differences The main difference between venture capitalists and investment banking companies is that while venture capitalists invest directly into companies and businesses, investment bankers act as an intermediary in financial transactions. When their invested business turns profitable, venture capitalists can sell their shares to private equity investors or others.  www.avendus.com/india

  5. Clients and dealings Venture capitalists usually invest their money in companies that aren’t recognised enough to raise capital in the global marketplace. By investing in these early-stage startups, venture capitalists help them scale their business and offer them an opportunity to grow and flourish. Investment bankers usually deal with well-established companies that have a significant standing in the global market.  www.avendus.com/india

  6. Earnings When venture capitalists invest in start-ups, they also undertake risks of huge losses. But their nature of investment is such that their profits from certain ventures often offset the losses incurred elsewhere. Investment bankers on the other hand earn by charging their clients fees for the services they render. Since they work with big companies, their earnings are also sizable. www.avendus.com/india

  7. Thank You www.avendus.com/india

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