Although venture capitalists can be a critical place for young companies to raise money, it comes at a steep price if the company pans out. The venture capitalists end up owning a big slice of the company, which reduces the ultimate payout for the entrepreneur. The book coversallthe crucial topics required to understand the fundamentals of the industry, including: Written in the straightforward and approachable tone theFor Dummiesseries is known for the world over, authors Matthew Krantz and Robert Johnson have created an indispensable resource for students and professionals new to investment banking.

Debt capital: Some investors have no interest in owning a piece of the company, but they’re more than willing to lend money to it, for a price. That’s the role of debt capital. Investment banks help companies borrow money by issuing bonds, or IOUs, that are sold to investors. The company must pay the prearranged rate of interest, but it doesn’t give up any ownership of the company. If a company falls onto hard times, though, the owners of the debt have a higher claim to assets than do the equity owners if a liquidation of the company is necessary.This article offers our must-read books for current and aspiring investment bankers. Use these resources to grow your career as a finance professional or an aspiring deal-maker looking to enter the profession. Strategies for different types of risk management: market, credit, operating, reputation, legal, and funding Wrap your head around the complicated world of investment banking with thisunderstandableand comprehensive resource

Charles D. Ellis chronicles the fascinating rise of Goldman Sachs by telling the personal stories of the people behind the firm that has gone through a tumultuous history in its 140-year existence. We also assume you’re not an investment banker, because we haven’t met many investment bankers who would admit to being a dummy. But you’re probably someone who wants to know what investment bankers do and maybe even think about being one every time you watch Wall Street. But these important documents can’t do you any good if you can’t find them. That’s what you find out how to do in Chapter 6. There you discover tools that make it easy for an expert investment banker to retrieve and find all the relevant data from the financial statements, even information the companies may not realized is as valuable as it is. Understanding the importance of financial statements and ratios In addition, the latest edition includes need-to-know information on how to develop strategic relationships, understanding the role of technology in investment banking, and a chapter on startup financing.It offers a detailed but straightforward step-by-step approach to valuation methodologies, leveraged buyouts (LBOs), and corporate mergers and acquisitions. Although a good resource, the book limits its scope to basic investment banking transactions.

The book comprises his journey, life principles, and work principles. Dalio covers over 500 principles and sub-principles to help readers succeed in life and work. The key investment banking operations: venture capital, buyouts, M&A, equity underwriting, debt, and more Given the great role investment banking plays in the financial system, it has taken on a larger-than-life mystique with the masses. Many people suspect that investment banks are pulling the strings of the economy, but they may not know enough to realize exactly what investment banks do. This handbook is essential for any investment banker, especially for mergers and acquisitions advisors and financial professionals working in private capital markets focusing on the middle market.While reading this book, keep in mind that we’re trying to explain the topic, not impress you with how complicated the topic is. To help signal when a topic is about to get hairy, look for the Technical Stuff icon in the margin. When you see that icon, it means the information is great if you sleep with a calculator on your pillow instead of a teddy bear, but feel free to skip it if it’s too much to handle right now. After the tumultuous changes in the investment banking business following the financial crisis of 2007 through 2009, the entire landscape changed. Following the banking crisis, investment banks needed capital. Some of the most storied investment banks, unable to raise money, merged with other banks or became commercial banks themselves. Suddenly, the financial system was comprised of behemoth banks that have the deposit-taking abilities of banks but also engage in investment banking. The result is the formation of several mega-institutions that many people fear are too big to fail, including the ones shown in Table 1-1. TABLE 1-1 Among the Last Banks Standing Bank loans: Commercial banks are in the business of lending to companies that need capital. Periodically, a bank may extend a line of credit to a small business, especially if the business is stable. Banks, though, tend to be skittish and won’t lend if there’s even a scent of risk with the company. Internet companies, which have little in the form of assets, for instance may be turned away for bank loans because there isn’t anything to be used as collateral. Tip The concept of a discounted cash flow may be something you can learn in school. But it’s the assumptions and the quality of the inputs embedded in the analysis that make this technique essential to the investment banker. In many ways, investment bankers can show off everything they know when they create a detailed discounted cash flow analysis, which you find out about in Chapter 12. Seeing how leverage becomes a force in investment banking Underwriters stay involved in the process during this tenuous first day of trading. Investment banks want to do whatever they can to make sure the shares of the newly public company don’t break (close below the initial price). A broken deal is often looked at negatively by investors; plus, a broken deal makes it look like the investment bank didn’t set the initial price correctly.