The Various Types of Money in the Investment Industry (Essay Sample)

The Various Types of Money in the Investment Industry
The investment industry is divided based on impact versus return. Some investors are driven by how much influence and effect a particular venture has on society. In contrast, others make decisions depending on how much profit, benefits, and revenues they can get from business activity. In this industry, there are two sides of players: those seeking money at the early stages of business start-ups and those dispensing the resources who enjoy the fun part of the ventures (Starr, 2016). Also, these participants can be associated with for-profit activities that lack substantial money and resources or nonprofit organizations that enjoy the support from easy grant money.

There are three types of money in the investment industry. The first is the free money from grants given by foundations, philanthropists, and aid agencies primarily targeting impact on the community (Starr, 2016). The other is real money presented as equity or debt by investors anticipating returns and not caring too much about impact. Lastly, the maybe money are resources from savvy investors giving a chance to start-ups or less smart investors confusing the opportunity as real money. Either way, they might get the money back or boost the venture into real money opportunities. The free money is more, followed by the real money and the maybe money.