Investment Capital
Smart money provides strategic support beyond cash, while dumb money may only offer a higher valuation. The article argues that owning a smaller share of a much larger company can be better than owning most of a small one. Food, beverage,…
1 sources - 4 claims
Smart money provides strategic support beyond cash, while dumb money may only offer a higher valuation. The article argues that owning a smaller share of a much larger company can be better than owning most of a small one. Food, beverage, and beauty companies generally need at least $20 million to $30 million in revenue to be serious acquisition candidates. Taking investment requires selling part of the company, which creates emotional risk for founders.