Robin is an entrepreneur and she is looking for a private eq

Robin is an entrepreneur, and she is looking for a private equity firm to make an investment in her firm. How can Robin tell the difference between the \"dumb money\" and \"smart money\" that various private equity firms are offering? Why does it matter?

Solution

The basic difference between Dumb money and smart money is that, smart money money will bring some extra percusite with it which will help you to grow your business and dump money will bring some extra cost or hinders that will harm your business.

Following are the more differences with explanation why does it matters:

1. Dumb money investors are generally new compared to smart money investors in the industry they are investing, so smart money will help you in grow faster and they can give you assitence.

2.smart money investor have more contact and creditability which will help our organization to grow because they can suggest some good idea related to our business operations and other supporting activities.