In many countries it is often difficult for entrepreneurial ventures to obtain external capital on adequate terms. It is possible that informal investors, that is, private individuals who provide risk capital directly to unlisted small firms, may play a significant role in filling the finance gap for entrepreneurial ventures. The present study will describe the decision-making criteria used by informal investors and analyze the effects investment strategies have on the propensity to accept or reject new investment proposals. In the study, a dichotomy is found between informal investors working with a ''specialization'' investment strategy and those with a ''diversification'' strategy. The results show that informal investors working with a specialization strategy (with portfolio firms within approximately the same business area or development phase) seem to receive fewer investment proposals and seem to have a higher propensity to accept new investment proposals than do diversified investors. The results can be explained by the investor's perceived uncertainty in the evaluation process. A specialization investment strategy leads to a low perceived uncertainty which means that the investor is highly motivated to invest, has clear expectations regarding the outcome of the decision and as a consequence has a strong commitment to the proposal, and has a strong propensity to accept new proposals.