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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

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.

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.

What Are the Pros and Cons of Investment From a Strategic Entity?

Ask The VC

What Are the Pros and Cons of Investment From a Strategic Entity.

Ask The VC

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.

You Are What You Eat (or Where You Get Your Funding)

UC Berkeley

Some people may feel that finding investment financing is difficult enough, let alone finding the perfect investor. Counter-intuitively, I believe your best opportunity for finding financing is to find the investors who are best for you. The three most common sources of financing are venture capitalists (angels and micro-VCs also fit into this category in my book), private equity firms, and strategic investors.

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.

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.

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.

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.

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.

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.

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.

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.

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 Glorious Post Seed Startup Financing Chaos

Fred Destin

We have Angellist and it’s hyper transparency engine for seed investing and the "Great Unshackling of the Angel Investor". The other day I got a call from Scott Kirstner at the Boston Globe answering: “what happens to all these incubators entrepreneurs after Demo Day”. The short answer: chaos.

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.

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.

4 Smarter Ways to Work Your Connections

Inc Startups

Getting a personal introduction to a strategic investor or business partner means everything to an entrepreneur. Success in business is all about relationships. Your network is your most important asset. Treat it that way.

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.

3 Reasons to Take an Investment Banker's Call

Inc Startups

Would you prefer to work with a financial or strategic investor? What does it take to prepare to sell or find an investor? They can also explain the different types of buyers and investors available to you and the advantages and disadvantages of each type.

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.

Can Alliance's new early-stage fund get Norway on track?

ArcticStartup

We''ve heard that there are no investors, or if there are, they''re government backed funds managed by people with backgrounds in Finance or the Norwegian government - not exactly smart money.

CrowdCurity Raises $1 Million to Crowdsource Security for Bitcoin Startups

ArcticStartup

And following were strategic investors Gerhard Eschelbeck, CTO and SVP of Sophos; Dr. Fengmin Gong, Cofounder and Chief Architect of Cyphort; and Mountain View-­based incubator 500Startups. For many hacked-together startups, security is an afterthought.

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.

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.

Estonian AdCash raises €20 million as their first investment

ArcticStartup

As one of the investors told Padovani, there is such as thing as a startup "that everybody wants, but nobody will buy.". Naxicap Partners are very present after the investment, which, they say, is what they wanted out of an investor.

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.

How to deal with the Series A crunch

Version One Ventures

Not having a lead investor in your seed round can make it tougher to pull together a bridge round or follow-on financing down the road, since no single investor feels in charge or vested in your success. Do your homework on potential investors. You’ll increase your chances of getting funded beyond the seed round if you take money from VCs that are known to be patient investors and have enough funds reserved for follow-on investments.

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

5 ways to advance your term sheet: AKA “How to think like an investor”

The Next Web

My daily work consists of connecting innovative A round startups with potential investors or strategic partners. Yet this is the time when you will be most in demand by investors. Will a strategic player acquire you because they need your solution?

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

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.

Why You Need a Reverse Roadmap

Inc Startups

It’s about setting reasonable metrics for success and aligning, to the greatest extent possible, your interests with those of your investors. Follow-on investors New investors Post-money valuation Management stake (%) Management value ($) Next Round (date?)

5 Lithuanian Startups You Did Not Know

ArcticStartup

This year Brolis Semiconductors started management buy out process and they've attracted strategic investors such as Eksma and Light Conversion. Lithuanian capital Vilnius is one of the largest financial centres in the Baltic states. Photo: Shutterstock.

7 Floors to Millions of Dollars

Inc Startups

You've got a seven-floor elevator ride to sell your business idea to an investor. Investors have heard so many bad ones they just want you to hustle through that painful part so they can get to their 20 questions.

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.

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