Should you Take Money from a Strategic Investor?

VC Deal Lawyer

This issue is not limited to strategics – there are good and bad angels, good and bad VCs, good and bad private equity players, and the list goes on. So never dismiss money just because it comes from a strategic. Some critical questions to ask are (ranked in no particular order): Who at the strategic is actually responsible for the investment - operations? When it comes to most strategic investors, the reasons for investment go beyond just earning a return.

Announcing a new strategic investor and partner at Brooklyn Bridge Ventures

This is going to be BIG.

That''s when Marc offered to be the sole investor in the fund--putting up the whole $15 million. So, unfortunately for everyone else, including my existing investors in Fund I, there is no opportunity for anyone else to invest in my second fund.

The pros and cons of Strategic Investors

Inc Startups

Should you raise money from strategics instead of VCs

Why You Should Look for Strategic Investors in Unlikely Places

Inc Startups

Two companies that have turned to unexpected strategic investment partners to accelerate to their goals faster

More About Non-Investor Investors

Mark Birch

In my post on non-investors investing in startups , I neglected to discuss strategic investors. While they come with more credibility and experience in handling investments, I lump them into the same category as the non-investor class.

New Things In Venture Deals v3

Feld Thoughts

If you are looking for a last minute holiday gift for your favorite entrepreneur (or lawyer, VC, or angel investor), we’ve got you covered. A section on Corporate Venture Capital and Strategic Investors.

Taking Corporate VC: When It Makes Sense

View from Seed

In recent years we’ve seen more and more corporations become more active or establish strategic VC arms. A startup can benefit in various ways from having a strategic investor involved in their company, but there are plenty of drawbacks too, both commonly known and more subtle.

The Clean Energy Challenge Adds $100,000 Grand Prize for Student Business Concepts

EIN News

Industry-leading venture capitalists and strategic investors will select the most made possible by a grant from the U.S. Department of Energy. Incorporating the Student Challenge. with the support of experienced mentors.

Fifth Annual Clean Energy Venture Summit 2011

EIN News

a venue for presenting their innovations to venture capitalists, , and strategic investors that currently invest. competition and educational conference in the Southern United States. The Summit provides clean technology companies and. the perspective of a diverse set of venture capital firms, said Jeff Otto, Director of Sales

Spanning Cloud Apps Raises $6 Million

SiliconHills

The company reported that an undisclosed strategic investor led the round and Foundry Group of Boulder, Colo. Spanning Cloud Apps has closed on $6 million in Series B funding. The Austin-based company makes backup software for Google Apps. also participated. Since its founding in 2010, Spanning Cloud Apps has raised $9 million. “We’ve spent the [.] The post Spanning Cloud Apps Raises $6 Million appeared first on SiliconHills. Austin Technology

Cloud 40

San Diego Startups — E-Band

Market by Numbers

E-band was founded by Sam Smookler and Saul Umbrasas and has received financing from both strategic investors and VCs, including San Diego based Avalon Ventures and Express Ventures. (38th in a series introducing San Diego high tech Startups.). E-Band Communications. E-band provides wireless backhaul solutions, manufacturing 60, 70 and 80 GHz point-to-point technology.

On Corporate VCs

A VC : Venture Capital and Technology

There are two kinds of corporate investments in startups; passive corporate VC arms and active strategic investments. For the most part, they don't "suck" They can be a good source of capital for your company, they can be supportive investors who follow on when the rest of the syndicate does, and they generally have good reputations, including with me. Every once in a while I display some emotion publicly that I regret.

Is Strategic Money an Oxymoron?

Both Sides of the Table

The topic of &# strategic&# investors came up. And I had 2 “strategic&# investors in my first company. What is a “strategic&# investor and why do you keep putting the word “strategic&# in quotes? They are strategic with no quotes.

Congratulations to Appear Here

The Equity Kicker

I’m stoked that Appear Here , brainchild of Ross Bailey and one of our portfolio companies has raised £1m in funding from a range of strong investors.

VCs Bet on Mobile App Development

Business Plan Blog

Given the popularity of mobile devices and the apps that make them great, venture capital investors are chomping at the bit to get a piece of the pie. Notable recent exits that have caught the interest from strategic investors include: Facebook’s $85M acquisition of Parse; and.

Reserves

A VC : Venture Capital and Technology

This is not true for angel investors, seed funds, growth funds, and strategic investors. That means that you can’t raise your next round from your VC investors, but you can count on them for a material part of the round. That means that a firm like USV might go back to its investors for a new fund (USV 2008) after only investing a portion of a fund (USV 2004).

Startup Capital: Feast or Famine?

Gust

Sources of Capital for Startup Entrepreneurs – The primary sources of cash for new companies are (1) self (the entrepreneurs’ resources), (2) government grants, (3) friends and family, (4) angel investors and Super Angels , (5) venture capitalists and (6) strategic investors. Strategic investors tend to be later stage sources, and will not be addressed here.

SBIR 100

Startups Must Embrace Coopetition For Rapid Growth

Startup Professionals Musings

As small companies, neither startup could afford to extend their product alone, but through creative leadership, we were able to negotiate a win-win strategic partnership for a joint product. Competitors can become strategic investors or merger candidates.

NextIO Secures $12.3 Million in Series F Financing

Austin Startup

This round included investment by existing investors and an undisclosed strategic investor. NextIO, the pioneer in I/O consolidation and next-generation networking solutions, today announced it has closed a Series F funding round of $12.3 million. NextIO, which demonstrated significant growth in 2011, will use the new funds to further expand sales and marketing efforts and to further expand NextIO’s family of I/O consolidation solutions.

Never Been Easier to Become a VC. Never Been Harder to Stay One.

Hunter Walker

As we approach Homebrew’s one year anniversary we’ll do a smaller scale meeting with our investors in San Francisco. strategic investors (including corporates). traditional institutional LPs such as fund of funds, endowments, foundations, sovereign wealth funds ( our investors ).

The Problem with Collecting Logos at Startups

Both Sides of the Table

I call this collecting logos because it seems that having fancy brands to brag about trumps the logic of maximizing the value of your investor. If the deal has just one investor, for example, there’s absolutely no hiding for the investor if the company fails.

Why I Don’t Like Board Observers

Both Sides of the Table

The first scenario is where an investor puts in money but not enough for them to justify taking a board seat. That’s what “information rights&# are for and you can promise the investor to meet 1-on-1 on a quarterly basis. This is part of my ongoing series Startup Advice.

Raise money on good news

Berkonomics

Or when something happens that makes an investor think this company is about to break out. It’s human nature for investors to want to buy into a fast growing future, proven by some event in the immediate past. They will be immune to the disinterest shown by financial investors.

Ego

aweissman.com

I can''t remember if this was the first or second financing, 2007 or 2008, but we''d been out talking to various financial and strategic investors for a few months explaining the story and model. One of those investors was someone we had previous close relationships with and one who potentially could be strategically relevant and important to our business; we assumed we''d get a warm reception there, which we did.

How To Sell Your Company Without A Buyer

Anything's Possible

Strategic Fundraising Can Test the M&A Market. No matter how much we tried to convince VCs that enabling mass customization in dentistry was a big economic opportunity, even the most excited investors would put a discount on a market that they didn’t know well. Micah and I decided to seek out strategic financing for two reasons. First, we thought a strategic investor could help financial investors understand the potential value of the business.

A Socially-responsible, Triple-bottom line Taco Shop: SMB Tech Talk from Chaia

Hunter Walker

This week I’ll be running a series of Five Question interviews with small businesses which were facilitated by BondStreet , a SMB lending platform (we’re investors). I’ve been asked if our investors balked at the idea of a socially-responsible, triple-bottom line taco shop?

A Socially-responsible, Triple-bottom line Taco Shop: SMB Tech Talk from Chaia

Hunter Walker

This week I’ll be running a series of Five Question interviews with small businesses which were facilitated by BondStreet , a SMB lending platform (we’re investors). I’ve been asked if our investors balked at the idea of a socially-responsible, triple-bottom line taco shop?

Siklu Raises $19 Million for Cheaper Wireless Bandwidth

VC Cafe

Israeli startup Siklu Wireless Communications has raised a series B round of $19 million led by new investors Amiti Ventures , Qualcomm Ventures and joined by all existing investors: DFJ- Tamir Fishman Ventures , Evergreen Venture Partners and Argonaut Private Equity. Another strategic investor (CVC) joined the round but remained undisclosed. In the official announcement , the new investors explained their fascination with Siklu.

Hemu Ramaiah – Story of an Indian Retail Pioneer

VentureWoods

Choice between Private Equity and Strategic Investors. At Venture Intelligence, we recently had a great experience interviewing Hemu Ramaiah, founder of the Landmark bookstore chain (in which the Tatas acquired a majority stake in 2005). For me, the interview (which is part our Entrepreneur Podcast series “Entrevista&# ) served as a confirmation that a customer facing role is the best start to an entrepreneurial career.

Will Anobit be Apple’s R&D Center in Israel?

VC Cafe

Intel Capital Pitango Venture Capital , Battery Ventures Micron Technologies and other strategic investors have invested $76 million in the company to date. Apple is in talks to acquire Israeli flash maker Anobit for a rumored $400-$500 million, according to a report by Calcalist.

Thoughts from the road: building startups and collective ambition outside Silicon Valley

Version One Ventures

Over the past month, I’ve spent a lot of time in NYC, Toronto, and Ottawa for board meetings, conferences, meetings with our founders, re-connecting with co-investors, and meeting new entrepreneurs. The Bay Area is home to smart and strategic investors that contribute far more than just dollars. Just a few years ago, if you wanted to do something big, you needed to go to Silicon Valley.

Strategic $5 Million B Round for Jinni for Video Discovery

VC Cafe

The round B investors are leading innovators in creating the next-generation entertainment experience, across platforms and devices. A s TV’s gradually get connected to the Internet, there is an increasing appetite for smart content recommendation.

Huge Round for Waze, Raises $25 Million for Social GPS

VC Cafe

The round was led by prior investor BlueRun Ventures which valued the company between $90 million and $100 million. New investors joined as well, including Magma Venture Partners and Vertex, together with Qualcomm Ventures who joined as new strategic investors.

Rethinking Board Observers – The Role of the “Silent Observer”

Both Sides of the Table

Some “strategic investors” have rules that they can’t sit on board seats. It has always surprised me that founders were so quick to fight over how many board members there were and so quick to agree to have as many board observers as people wanted.

Quick Thoughts on Term Sheets and LOIs

Rob Go

In almost all cases, when a term sheet doesn’t result in a deal, it’s because of the investor feels like there was some form of indiscretion on the part of the company, or something catastrophic has happened in the outside world or to the partner or fund itself.

Meet the bold 20-year-old behind Spanish Firefox OS smartphone maker Geeksphone [Video]

The Next Web

The company is currently raising funding from a number of strategic investors and is looking to secure 1 million euros or more to accelerate growth.

Video 71

This Week in VC with Jim Armstrong of Clearstone

Both Sides of the Table

Investors: Lightspeed Venture Partners (Jeremy Liew)(lead), with existing investors: U.S. Investors: Greylock (Asheem Chandna) (lead), LightSpeed (Ravi Mhatre) (lead). Investors: Google Ventures. I believe that “strategic&# money is an oxymoron.

IPO 134

How to Stay in Control of Your Meetings

Both Sides of the Table

A find many board meetings highly unproductive in that they are often just a date in the calendar where management is set to update its investors and other board members of its performance over the past time period. Sometimes it’s because you have strategic investors. Meetings.

Karma

Information Arbitrage

This is particularly relevant for entrepreneurs and investors, between which exists a delicate symbiosis that teeters between cooperation and competition. This is further complicated by the fact that investors often work together, yet have the dueling agendas of doing right by their portfolio companies as well as their limited partners. Life is a series of interactions. How we manage these interactions plays a meaningful role in our future.

The Summer of Initial Coin Offerings

Seeing Both Sides

Many investors in the ecosystem that we respect have shared their thoughts on the power of the blockchain and cryptocurrencies to disrupt many industries (and we share those views) but few have discussed the downstream ramifications to our business.