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Do investors serve like banks?


someone comes up with a idea
that person needs money (investor 1)
investor 2 can provide funds
does investor 2 setup a plan for investor 1 to pay them back?
just like a bank

That is one way to invest. What you describe is just a loan, which is an investment with a structured return.

Other investments are equity investment, when you are actually part owner of the entity. The return is based on the value of the ownership interest and dividends.

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