strategic investor

Intermediate 🚀 Startup / VC

Definition

A corporate entity investing for business reasons beyond pure financial returns, bringing industry expertise and potential partnerships along with capital. Either your best ally or a Trojan horse gathering intelligence for a future competitive assault.

Example Usage

The strategic investor from MegaCorp seemed helpful until we pitched a feature their R&D team launched three months later.

Origin

Corporate development and venture capital terminology

Fun Fact

Strategic investors often have information rights in term sheets that let them see your financials and metrics—effectively legitimate corporate espionage.

Source: Corporate venture capital terminology

Related Terms

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