Smith has partnered with the investment firm, run by chief executive David Glick, to explore investment opportunities in a number of UK creative businesses.
It comes after Edge Investments backed businesses including online TV and film distribution platform TRX, run by former RDF and Zodiak boss David Frank, and UK producer Antidote Productions.
The private firm also launched an investment firm last year to plough $12m into UK television firms.
Smith was chief executive of BBC Worldwide between 2004 and 2012 and was responsible for four-fold revenue growth at the commercial arm of the BBC. He joined fashion house Burberry in 2013 as chief operating officer and left earlier this year.
“David Glick has built a super team at Edge, with an excellent reputation as the “go to” specialist investors in the creative industries. I look forward to supporting their efforts in identifying and together backing the most promising management teams and businesses across this sector,” said Smith.
Glick added that the chance to work with Smith was “compelling”.
“John has led a number of global businesses. He has a great track record across finance, operations and the creative process and a reputation for identifying and realising the new opportunities offered by the digital economy,” he said.