12/4/2021 Tip: Strategic & Corporate Investors | Growthink

12/4/2021 Tip: Strategic & Corporate Investors

Today’s Quote

“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
~ Peter F. Drucker

 

Today’s Tip

In addition to venture capital firms, venture capital is also disbursed by “strategic” or “corporate” investors.

Strategic investors are generally corporations that invest in early stage companies in order to 1) earn financial returns and 2) partially control ventures that could affect or “disrupt”, that is cause a significant change to, their market(s) in the future. 

Strategic investors can offer capital in amounts ranging from a few hundred thousand dollars or less to several million dollars. 

Some corporations, like Intel (via Intel Capital) and Siemens (via Siemens Venture Capital), have formal venture capital arms that actively seek and invest in emerging companies. 

These corporations are often the ideal investors to contact should you have a venture in their market space(s), since if they like your concept they could provide value well beyond their capital contributions such as strategic advice, industry connections, and distribution assistance. 

Note that most corporations, even if they don’t have formal venture capital arms, do fund emerging ventures if they are properly presented to them. This is specifically the case if the venture’s management team clearly shows how their venture could impact the industry and/or help the corporation further its mission.

For example, if you have a product or technology that enables a corporation to gain competitive advantage and thus increase profits, they might be extremely receptive to providing funding. Most major U.S. corporations have provided venture capital financing to emerging ventures.

 

Today’s Resource

Forget Old School!

The “old-school” way of raising venture capital is DEAD! 

And that’s why I created this page for you… to show you how to do it right.

See the right way to raise venture capital <– 

There’s a common mistake almost every entrepreneur makes… and if you approach venture capitalists like most entrepreneurs, you’ll NEVER get funded. 

Here’s how to do it right <—

 

Trivia

Today’s Question: Why do zippers have YKK on them?

Previous Question: An illustration of what TV and movie “celebrity” appeared on the teal-blue bottle of a unisex fragrance called Amphibia in 1995?

Previous Answer:  Kermit the Frog.  

The scent “pour homme, femme, et frog” was marketed by Jim Henson Productions, creator of the Muppets.

 

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