A broker-dealer is an entity or person that buys securities for its clients and for itself. In the realm of venture capital, broker-dealers assist companies in raising funds from investors and receive a fee for facilitating the transaction. Broker-dealers earn their compensation through transaction fees, also referred to as brokerage fees. To be eligible to collect brokerage fees, broker-dealers must comply with regulations by registering with both the SEC and FINRA, as well as passing a certification examination.