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An investment bank funds entreprenuers, right?


I'm just curious because I'm looking for non-commercial banks I can send my proposal to for funding. An investment bank is like a private bank or what? I'm puzzled.

Kind of. But you probably need a venture capitalist, a regular investor or else a loan.

An investment bank works with companies who are looking to go public. They typically help a business owner figure out how much his company is worth, then they help determine a target share price for the stock and number of shares to be issued.

At that point the investment banker purchases the stock for a set price (below the public offering price) and makes arrangements to have it resold in the open market. I'm leaving a lot out, but the bottom line is that they help private companies go public so their stock can be traded. They don't fund you; they buy and resell you.

No, investment bank helps in mergers and acquisitions of big companies, and raising of capital from IPO etc but not funding startups. It is Venture Capitalists that fund entrepreneurs.

Investment banks raise investment capital from investors on behalf of corporations and governments that are issuing securities. They typically underwrite IPO's for larger companies.

I think what your looking for is more of a angel investor/venture capitalist, which is a financial backer providing venture capital funds for small start-ups or entrepreneurs.

Good luck.

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