Strategic Investors in Financing
When seeking financing for a medium or small business, the default target is often a bank, financial institution or high net worth individual. Often the opportunity to raise capital from a Strategic Investor is overlooked.
A Strategic Investor is an individual or an entity that invests in a company with the aim of achieving strategic objectives, in addition to traditional financial gain. The objectives can vary depending on the nature of the investment, but typically involve achieving specific strategic goals such as expanding the business, gaining access to new markets, or acquiring new technologies or intellectual property. Strategic Investors are also more likely to take a hands-on approach to their investment, providing operational and strategic support to the company.
Another important feature of a Strategic Investor is that they can bring a range of resources and capabilities to the table. These can include industry-specific knowledge, access to networks and partnerships, and specialized expertise in areas such as marketing, technology, and product development. These resources and capabilities can help the company to grow and compete more effectively in its market, giving it a competitive advantage over its rivals.
Don’t overlook the value of Strategic Investors when considering financing. The cost of capital is often less than from financial players and the non monetary benefits may push your business to a new level.
Sinclair Range can help you with a process to find, negotiate and close an investment from a Strategic Investor.