Differences in Venture Capital vs. Investment Banking -- The Motley Fool

Venture capital and investment banking can be hard to tell apart for many outside of the financial industry. While these two types of financial firms are similar, they are also quite different. Here's a quick breakdown of the differences you need to know.

First, what is venture capital? Venture capital is a type of investment capital where the venture capital firm invests in a new or fast growing business or start-up that have the potential for significant returns, but also a high risk of loss.