Nowadays strategic investment is being talked a lot when referring to investment. Strategic investment refers to the capital expenditure that will have a long-term impact to an enterprise in the future. It refers to long-term goal based on enterprise development, characterizing in large scale, long cycle length, etc. And strategic investment affects the future and destiny of an enterprise.
For example. Joseph was interested in business when he was young. When he grew up, he opened a fried chicken company, but he wanted to make the company to be bigger and stronger. The situation was he was lack of funds. Jennifer was a professional investor. she was very optimistic about Joseph 's fried chicken company, so she invested 100 million yuan in exchange for 20% of Joseph 's equity.
Jennifer 's behavior is actually financial investment. Her purpose is simple. When Joseph 's company becomes bigger or even listed, she will sell the shares to make a big profit.
Jackie was in charge of a chicken factory. His factory had been supplying chickens to Joseph’s company. At the beginning, the cooperation between the two sides was smooth, but later on there was always some friction and dissatisfaction. In order to make this business more successful, Joseph paid 30 million yuan to buy the chicken factory.
This is strategic investment. Because Joseph bought a chicken factory, which is equivalent to controlling the upstream supply chain of the fried chicken company, then he can better raise chickens according to the needs of the fried chicken company.
From the above story, it is clear that the purpose of financial investment is to earn investment income.
Why do Internet companies like to make strategic investments? Because leading Internet enterprises are actually very anxious, what is the anxiety? The anxiety was reversed. Due to the rapid changes in the science and technology industry, the emergence of new technologies and new products often leads to the reduction of maintenance of old technologies or products.
The most typical example is that Nokia, as an absolute mobile phone leader, collapsed in just a few years due to the emergence of Android. This bloody lesson made the bosses of Internet leading enterprises tremble and couldn't fall asleep at night. Therefore, on the one hand, Internet enterprises will engage in a number of exploratory projects internally, or even several projects in similar projects.
To sum up, strategic investment is an investment for enterprises to serve long-term development; Financial investment mainly earns investment income. Strategic investors will intervene more in invested enterprises, and financial investors are mainly responsible for payment. Internet enterprises like strategic investment most, aiming to maintain long-term advantages in the technology industry.