Princeton partner Ian Goldstein authored an article for NJ TechNews titled, "Understanding the Strategic Investor." Ian's article provided an overview for entrepreneurs and company executives to better understand strategic investors, the investment arms of large companies that utilize company funds to invest in entrepreneurial companies.
Ian, the leader of the firm's Emerging Company & Venture Capital Practice Team, discussed in the article the importance of understanding the business of the strategic investor; evaluating intellectual property and confidentiality concerns; being proactive regarding any strategic partnering arrangement; and focusing on governance and exit rights.
He advised that "due to the complexity of [strategic investment transactions], a strategic investment can be more challenging to close than an investment transaction with an angel or venture capital investor." Therefore, "It is important for an entrepreneurial company to be fully prepared to address such complexities in order to appropriately attract the right strategic investor, to create a win-win investment relationship with such strategic investor, and to receive the significant additional benefits that may be obtained from securing such a strategic investment relationship."