What is Smart Money?
The concept of Smart Money is about businesses seeking funds from people or organisations that have key knowledge, contacts or resources in areas that will help the business to grow beyond what the investment of cash alone would accomplish.
An example of Smart Money could be a company that manufactures bespoke equipment for the mechanical industry. They know they are good at what they do, but they understand that they need expertise in sales and marketing in order for them to grow. At the moment, they are supplying local workshops, but they have a goal of growing their customer base to the rest of NZ.
In this case, the Smart Money concept would see the business look for contribution from a source that has proven sales and marketing experience. The contribution could come in the form of share purchase within the business, along with a time commitment to market and sell the company’s products throughout the country.
Another example is a Fin Tech startup looking to service the first home buyer market. They know that the advice that they give to their clients is heavily regulated and that the financial industry goes through constant change. They recognise that they have a need of ongoing legal advice, so they apply the Smart Money concept by seeking contribution in the form of share purchase and time input from people with legal experience in the financial industry.
Essentially, the concept of Smart Money is asking for contribution in the form of money, experience, relationships – or all of the above.
InvestaMatch allows businesses to market their needs to a database of members that have all of the above.
The information in this communication or on this website is provided for general information only.
InvestaMatch NZ Limited and InvestaMatch Limited do not assume any responsibility for giving legal or other professional advice and disclaims any liability arising from the use of the information.
If you require legal or other expert advice you should seek assistance from a professional advisor.