With regard to investment in start-ups,investment by _____ is considered as informal investment.

Question

Quizplus · Accepted Answer

Investment by friends is considered as informal investment as it is made by individuals who are not professional investors and are usually investing based on personal relationships and trust rather than financial analysis. Foreign entrants, venture capitalists, and banks are all examples of formal investors who invest with a more structured approach and with specific investment criteria.

With Regard to Investment in Start-Ups,investment by _____ Is Considered