Strategic Investor

Also called Corporate VC and CVC

A corporation (or its venture arm) that invests for strategic reasons, access to your technology, market, or data, as well as financial return. Corporate VC is the common vehicle.

Why it matters

Strategic investors can bring distribution, customers, and credibility a financial VC cannot, but their agenda may not always match yours. Weigh the strategic upside against the strings, like information rights or exclusivity.

For example

A large bank's corporate venture arm invests in a fintech startup partly for the return and partly to get an early look at its technology.

Related terms

Venture Capital Institutional Investor Board Observer

Go deeper

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

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