INVESTMENT BANGKING & VENTURE CAPITAL

FROM THE PERSPECTIVE OF BANGLADESH

Submitted To:
Nusrat Jahan
Assistant Professor
Department of Accounting & Information Systems
FBS, DU

Submitted By:
Maliha Jahan
ID: 19-146
Section: B
Batch 19th
Department of Accounting & Information Systems

Table of Contents
Introduction ................................................................................................................................ 2
Investment banking .................................................................................................................... 2
Venture capital ........................................................................................................................... 2
Investment banking in Bangladesh ............................................................................................ 2
Venture capital in Bangladesh: .................................................................................................. 3
List of investment banks & Venture Capital Firms in Bangladesh: .......................................... 3
Conclusion ................................................................................................................................. 3

Introduction
Investment banking and venture capital sound similar although their way of serving a purpose
are not the same. This assignment has shaded light on the difference between these two in the
perspective of Bangladesh.

Investment banking
Investment banking usually provides consultancy on merger and acquisition of business. Also
is involved in financial actions through buying a large amount of shares and selling them in
small lots to the investors (Nazirul Islam Sarker, 2015).

Venture capital
Venture capital is the media of getting financed for start-up and new small business which are
potential to have long growth in the market (About BVCL, 2016). Venture capital usually comes
from big investors, investment banks and other financial institution which pool similar types
of partnership.

Investment banking in Bangladesh

In Bangladesh, there are merchant banks which contain both developments as well as
investment banking. There are two types of investment banking avails in Bangladesh: close
ended and open ended. Open-ended banking does with market demand frequently while close
ended does not (Nazirul Islam Sarker, 2015). It plays an intermediary role between investors
and issuers. The main activity of investment banking is corporate finance. Sales and brokerage
to serve retail as well as institutional investors. It evaluates assets. Analyses risks, risk
tolerance, design customers portfolio.

Venture capital in Bangladesh:

Bangladesh venture capitals' primary aim is meeting the growth at an early stage of the new
companies and fund them (BD Venture Ltd - We invest in your growth, 2016). The mission of
this venture capital is at an early stage to assist the growth of company venture capital makes
available equity funds than borrowed fund. Sharing of knowledge, technologies, network with
new business to expand growth as well as success. To develop a portfolio of well-diversified
companies of different industries (Bangladesh Home, 2016). Venture capital helps to meet the
expected return of investors from existing portfolio companies. To assist the entrepreneurs
venture capital is a model for investors to maintain an entrepreneurial ecosystem in the field of
business. The development of the economy is counting on it too (About BVCL, 2016).

List of investment banks & Venture Capital Firms in Bangladesh:

Investment banks in Bangladesh
The commercial banks in Bangladesh also play a role in investment banking. There is no
specified investment bank. AB Bank ,Agrani Bank ,Al-Arafah Bank, Bangladesh Development
Bank ,Bank Asia ,BASIC Bank ,BRAC Bank ,City Bank, Dhaka Bank. These are some of the
names.
Venture capital firms in Bangladesh:
BD Venture Limited, Bangladesh Venture Capital, Bangladesh Startup Lab these are the
names of renowned venture capital firms in Bangladesh. They are providing venture to the
start-ups and unique ideas which have the high potentiality to grown in the market.

Conclusion
This assignment has given a brief scenario regarding investment banking as well as venture
capital firms in Bangladesh. These two play a significant financing role in establishing a
business in the industries.

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Reference
About

BVCL (2016) Venture.com.bd.

Available

at:

http://www.venture.com.bd/about-

us/about-bvcl (Accessed: 21 July 2016).

Ahmad, A., Rashid, M. and Shahed, A. (2014) "Perception of Bankers and Customers towards
Deposit and Investment Mechanisms of Islmic and Conventional Banking : Empirical
Evidence from Bangladesh", JIBM, 4(2), pp. 91-114. doi: 10.12816/0019145.
Bangladesh

Home (2016) Worldbank.org.

Available

at:

http://www.worldbank.org/en/country/bangladesh (Accessed: 21 July 2016).

BD Venture Ltd - We invest in your growth (2016) Bdventure.com. Available at:
http://www.bdventure.com/ (Accessed: 21 July 2016).
Nazirul Islam Sarker, M. (2015) "An Impact of Banking Activities of Private Commercial
Islamic Bank to Economic Development in Bangladesh: A Case Study on First Security Islami
Bank Limited (FSIBL)", JIM, 4(5), p. 264. doi: 10.11648/j.jim.20150405.28.