Nice writing style. I will come back to read more posts from you.
Susan Kishner
Dorothy Carlow
· 1 year ago
Great article. Thanks for posting. I have three questions:
1.) What kind of cash or money is illegal? Please give an example.
2.) Is there really that much money out there for start-up entertainment businesses?
3.) What kind of "strings" are attached to start-up money?
Peter Kaufman
· 1 year ago
Dorothy,
1. There are many types of illegal money; the most obvious being money from illicit activities such as money from drug dealers or organized criminal sources in which case there's a significant risk that the money is being "laundered" or cleaned through the investment.
2. Hard to say how much money is out there in general. To be sure, the credit markets are tightening but investors with cash are looking for new places to invest now that real estate is out of fashion. It all really depends on the risk vs. reward to the investor.
3. This too varies. With dumb money, the condition on the investment can be limited to the right to recoup the investment plus a "vig" or return on the investment. Smart money usually requires additional controls such as approvals of personnel, business plan, business partners, etc.
steve corn
· 1 year ago
Smart...good Dumb...bad
Peter Kaufman
· 1 year ago
Steve,
Smart money is no better or worse than dumb money. They each work best on certain types of transactions.
If you want capital investment with minimal interference then dumb money may be right for you. However, if you need the experience and oversight that only a financier can provide, then you may want to consider smart money. Smart money may also be more likely to make additional investments down the road.
All Comments
Susan Kishner
questions:
1.) What kind of cash or money is illegal? Please give an example.
2.) Is there really that much money out there for start-up entertainment businesses?
3.) What kind of "strings" are attached to start-up money?
1. There are many types of illegal money; the most obvious being money from illicit activities such as money from drug dealers or organized criminal sources in which case there's a significant risk that the money is being "laundered" or cleaned through the investment.
2. Hard to say how much money is out there in general. To be sure, the credit markets are tightening but investors with cash are looking for new places to invest now that real estate is out of fashion. It all really depends on the risk vs. reward to the investor.
3. This too varies. With dumb money, the condition on the investment can be limited to the right to recoup the investment plus a "vig" or return on the investment. Smart money usually requires additional controls such as approvals of personnel, business plan, business partners, etc.
Dumb...bad
Smart money is no better or worse than dumb money. They each work best on certain types of transactions.
If you want capital investment with minimal interference then dumb money may be right for you. However, if you need the experience and oversight that only a financier can provide, then you may want to consider smart money. Smart money may also be more likely to make additional investments down the road.