Looking for a strategic investor? We’re here to help!
Whenever a startup company decides that the best course of action involves strategic investment, it’s important to consider how it will benefit the relationship to get the most out of the strategic corporation that’s really interested.
A great amount of value can generally be created for portfolio companies in terms of strategic investment. This includes the following:
*Internally navigating a corporate giant
*Product innovation and support
*Market insights
*Operations/IP/Distribution
Determine exactly how much responsibility you want a strategic investor to actually have. If this person is a junior, you should more than likely object and request a more senior individual, as they will have the power to get a lot of things done on your proposed partnership investment. It’s also important to note that you can also obtain access to different strategic benefits through either angel investors or your advisory board. The board itself can grant equity to both senior and experienced executives from their respective industries. Furthermore, ex-senior directors and executives from these same industries can also be used as another great idea since they likely still have strong ties to their former employers, as well as being able to assist you with understanding how certain decisions are made and who the right individuals are to benefit your company.
All in all, strategic investors have the exact same appeal for entrepreneurs as celebrity investors in a lot of different ways. They have the opportunity to essentially associate themselves with a household name and generate a lot of buzz. Additionally, they can also obtain access to a lot of key players. However, this is not a standard type of investment, and it’s wise to not treat it as one. Always be sure to ask all of the right questions and define all of the different benefits before talking about any kind of investment. Additionally, be prepared to push back if you are ever asked for any kind of privilege that isn’t standard in any kind of financial venture capital investment discussion.