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Definition: Strategics

on April 30, 2014

Definition: Strategics

Unlike traditional venture capital investors, strategic investors invest on behalf of their parent company. Examples include Time Warner Investments and Intel Capital.

In 1994, just 2 percent of U.S. venture capital investments were made by these corporate venture capitalists. By 2000, corporate venture capital made up 17 percent (almost $20 billion) of venture investment, according to the Strategic Venture Association. Today, the percentage is likely even greater and it's fair to say that most early- to mid-stage entrepreneurs who successfully raised money for their companies garnered at least some of that capital from strategics.

Related: Funding Sources for Life Science Startups

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Definitions are a weekly feature on eMed for current and aspiring healthcare entrepreneurs.

Category:  Creation  Tags:  Definition, strategics

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