Strategic Investment

Definition of 'Strategic Investment'

An investment that a corporation or affiliated firm makes in a young company that offers to bring something of value to the corporation itself.

The aim may be to gain access to a particular product or technology that the start-up company is developing, or to support young companies that could become customers for the corporations products.

In venture capital rounds, strategic investors are sometimes distinguished from financial investors - venture capitalists and others who invest primarily with the aim of generating a large return on their investment.

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