The name “investment bank” somehow always sounded like a place where I could somehow deposit my investments, and maybe even earn a little interest. Then I learned that these banks really negotiate investments and collect fees on the transactions, sort of like commercial banks do with loans to businesses. None normally work for or provide funds for early-stage startups.
Many investment banks even call themselves “boutiques.” As near as I can tell these are smaller ones, who don’t sell clothes, but typically sell companies and securities in a particular set of industries. All investment banks have to be staffed by licensed specialists, called broker-dealers. Very confusing.
To read the full, original article click on this link: Startup Professionals Musings: Startups Get No Help From an Investment Bank
Author: Martin Zwilling
