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Financial Investor Definition

Financial investor – n : an investor (individual or firm) who makes investment decisions primarily based on the prospect for financial gain; financial investors tend to uses financial skills and methods to increase returns and manage risks. (By contrast, strategic investors – typically companies – make investment decisions based on the prospect of strategic benefit for their organization, such as future access to a key new technology or product.)

Example: Venture capitalists are classic examples of financial investors; their partnership agreements with their limited partner investors stipulate that they will strive to invest their fund(s) in such a way as to try to maximize financial return for their investors.

Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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