strategic-investment

Vocabulary Word

Definition

'Strategic Investment' refers to making a financial commitment, like buying shares or properties, that supports a long-term goal or plan. It's like using your savings to buy a house rather than a car because it will increase in value more.

Examples in Different Contexts

For venture capital, strategic investment involves selecting startups or innovative companies with the potential to disrupt the market or enhance the investor's portfolio. A venture capitalist might explain, 'We focus on strategic investments that offer not only financial returns but also strategic synergies with our existing investments.'

Practice Scenarios

Academics

Scenario:

As part of our new strategic plan, we're considering improving our research facilities and engaging highly reputable faculty members.

Response:

I agree. Strategic investment in our faculty and research facilities will greatly benefit the university.

Business

Scenario:

We're exploring acquisition opportunities that could broaden our service offerings and increase market share.

Response:

Absolutely. A strategic investment in a potential acquisition could significantly enhance our market position.