Venture capital is provided by commercial banks, investment banks, private banks, fund managers, and trust managers.
Venture capital is money provided by professionals who invest together with management in young, fast-growing companies that have the potential to become significant financial contributors. Venture capital is an important source of capital for start-ups.
Professionally managed venture capital firms are generally private companies or joint-stock companies funded by public and private pension funds, endowments, foundations, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves.
Remember that banks and investment firms want to lend money, so don’t be afraid to approach them!
Investment banks help companies, governments, and their agencies raise money by issuing and selling securities on the primary market for mergers, acquisitions, and other types of financial transactions.
Investment banks also act as trade intermediaries for clients. Investment banks differ from commercial banks, accepting deposits and making commercial and retail loans. In recent years, however, the lines between the two types of structures have blurred, especially as commercial banks have offered more investment banking services.
A merchant bank is a traditional term for an investment bank. It can also be used to describe the private equity activities of banks.
Commercial banking can also refer to a bank or a division of a bank that deals primarily with deposits and loans from corporations or large companies, as opposed to normal individual members of the public.