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