Does a venture capitalist perform same functions as an investment banker? Do they differ in their role functions?
Joeann ClarySocial Butterfly
What is the difference between a venture capitalist and an investment banker?
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Investment bankers work as intermediaries between investors and companies looking for funding. A company or startup often require the services of an investment banker to help with finding investors, dealing with regulatory issues and to help with initial public offering when going public. Venture capitalist often invests directly in the company but an investment banker often helps deal more with the financial transactions. A venture capitalist focuses more on startups and companies while investment bankers look for grown companies.
A venture capitalist is a is an individual investor firm or a group of people who invest other people’s money in startups. Sequoia is a venture capital firm that has invest in many startups. Venture capitalists support the growth of a company all the way until it goes public or is acquired.