Fund Raising

Strategic Investment

Strategic Investment

Strategic Investment

A strategic transaction occurs when two companies come together to capitalize on their pooled resources and identify the areas where synergy is possible. Such a business deal can be classified as Strategic Investment if one party invests in another company in lieu of favorable terms such as equity stake. The same transaction is classified as Strategic Collaboration if no investment is involved and both the parties are compensated in terms of value addition to the business. For eg. Company A is investing in Company B along with providing technical knowhow and is receiving 5% of sales as a royalty. This deal would be considered Strategic Collaboration. However, if Company A is compensated with a 5% equity stake in Company B for infusing capital and technical know-how, the transaction would be called Strategic Investment.

StartupMinds has played a crucial role in multiple transactions by identifying the synergies and redeeming benefits that would arise out of a potential Strategic Investment and/or Strategic Collaboration. The company has successfully executed various strategic transactions such as facilitating Strategic Investment from blue-chip companies to Indian startups.

StartupMinds executes such business deals by identifying the following opportunities for its clients and facilitating the transaction:

  1. Synergies expected to arise out of combined business operations

  2. Diversifying bouquet of products and servicesĀ 

  3. The entry point for new business lines

  4. Growth prospects (such as through economies of scale)

  5. Filling in supply-chain gapsĀ 

  6. Reducing costs via vertical integration

  7. Eliminating current or future competition via horizontal integration

  8. Strong market positioning as a united entity

  9. An enhanced network of industry players

  10. Unified marketing efforts

  11. Increased geographical access

  12. Opening up a new market segment

  13. Enhanced focus on core business