Smart money is such a financial investment by an investor who put finance into the business together with know-how, knowledge, experience or business contacts. In other words, not just a mere pouring money into the company but also by non-financial investment - know-how, experience and business contacts.
What means the smart money in practice?
Smart money is usually associated with private investors - business angels or venture capital firms. Business angels are sometimes serial entrepreneurs, and thus transfer their experience of business also starup or companies in which they invest. It is logical that they protect their own investment - they increase the probability of the success of the company. Unlike traditional bank loans, credits or similar loan financing that in any positive way interfere into the business - they can thus be called as dull money.
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