Strategic Investor
Definition
A strategic investor invests for business synergies (partnerships, product integration, eventual acquisition) in addition to financial return, typically a corporation or its venture arm.
How it comes up in fundraising
Strategics can add distribution and credibility, but their terms deserve scrutiny: rights of first refusal or exclusivity can chill future acquirers.
Frequently asked questions
When should I take strategic money?
When the strategic is a natural customer or channel and invests on clean, financial-investor terms without exclusivity or ROFRs on the company.
Do strategics lead rounds?
Sometimes at later stages; early on they more often follow a financial lead to avoid setting terms.
Cite this term
Round Funded. "Strategic Investor." Startup Fundraising Glossary.
Stable URL, it will not change: https://www.roundfunded.com/en/glossary/strategic-investor
Put this term to work
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