We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Strategic Investor?

Malcolm Tatum
Updated: Feb 13, 2024

A strategic investor is an individual or entity that goes beyond simply investing financial resources into a business or other investment opportunity. Investors of this type are often intimately involved in some aspect of the business operation, and actively contribute time and talents to help grow the business. This in turn increases the financial gains realized by both the strategic investor and everyone else who has a stake in the success of the business enterprise.

The various types of investors are usually segregated into two specific classes. One is known as a financial investor. This type of investor purchases shares or invests money into a business with the goal of eventually generating some type of return, either in the form of recouping the initial investment plus interest, or by means of receiving dividend payments from the shares in his or her possession. Many investors use this approach as a means of building a solid and varied financial portfolio, choosing investments based on their assessment of the soundness of the businesses issuing the shares and the ability of the owners and managers to grow those businesses and increase the returns.

A strategic investor is different from a financial investor, in that he or she not only buys shares of stock or loans money to a business, but becomes involved in the operation of that business. For example, an investor of this type may aid in making decisions regarding the acquisition of raw materials for the production of products, provide some type of assistance in project planning and management, or even oversee some day to day aspect of the company operation. The idea is to match the talents of the investor with the needs of the company, and increase the chances for both parties to benefit from the relationship.

Deciding to become a strategic investor means making a conscious decision to devote more than financial resources to the success of a business enterprise. Since the involvement in the life of the company is ongoing, investors of this type must set aside time to make sure any responsibilities they take on are managed effectively. A commitment of this kind is not to be entered into lightly, and must be treated as a priority for as long as the investment is held. For this reason, the strategic investor must often be especially selective in the investments he or she chooses. Failure to do so can lead to a great deal of frustration and possibly place the monetary investment at risk.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.