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RE: 7 Early Stage Funding Options For Startups
I've just discovered your content. Really valuable, in my opinion, so it was an easy decision to follow you.
About strategic investment, doesn't it come with a lot of strings attached as well? And this usually ends up with selling the business to the strategic investor for a sizable profit, if it booms.
If the owner likes creating start ups and selling them, that's a great way to do it, but if he or she wants to remain the owner, probably not the best method to stay in control.
Hi @gadrian, you raise a good point here. It's true that a strategic investor is looking for more than just a standard return on investment like a VC Firm would. However, that doesn't always mean they want to buy the company. They may just want to secure preferential terms as a channel partner for example.
Everything is negotiable at the beginning so my advice is just be clear on what your objective is long term and don't be afraid to say no if the proposed investment does no align with your objectives.
Cheers, Alan
You are right, I haven't thought of that. They might just be looking to have preferential treatment in further business deals.