Not All Investors are VCs: Who Are Strategic Investors?

By Kimberly Klayman / GUEST  &  Richard Catalano / GUEST

One of the most important tasks for a founder is to find and secure funding.

Initial funding typically comes from a founder’s personal funds and credit cards or from friends and family. One of the most popular sources of financing for startups was personal funds. Furthermore, a lack of personal funds is among the most prevalent reasons that startups fail. However, not all founders have the capital to finance their own startups.

For many bootstrapping founders, it is critical to find compatible angel investors and venture capitalists who can help jumpstart their businesses into high growth. In the last several years, corporations, or “strategic investors” in particular, have increasingly invested time and funds into the venture capital space.

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