The term “strategic investor” refers to an individual or group that offers more than just money to a startup, which can include: industry expertise, connections with other industry operators or investors, or support on marketing, sales, design…etc.. Typically startups should have one or two strategic investors each round to make sure they’re maximizing the value of their cap table.A word of caution—if you are going to take on a strategic investor, make sure they didn’t include any unique controls or rights in their term sheet outside of those granted to your other investors such as a Right of First Refusal.