• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 11. Other Venture Capital Invest... > Financial Institutions Which Invest ...

Financial Institutions Which Invest Directly in Funds

Many institutional investors such as investment banks, insurance companies, and pension funds have increased the volume of their direct investments in startups, after years in which the majority of their investments were made through “traditional” venture capital funds.

Investment Banks

Investment banks have always filled several roles which are relevant to startups, the main ones of which are assistance in planning and executing public offerings and private placements, and assistance in monitoring and researching the fields of activity of public companies. In recent years, the volume of the investment banks' activity as managers of private equity funds which also invest in startups has increased. In their investment activities, banks operate similarly to venture capital funds. However, they can also actively assist the company in soliciting investments, either as the company's agents or within a relationship created with the company, in the hope of acting as lead underwriters when it goes public.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint