According to Gurwin, "In such a market environment, companies that need to raise capital to finance growth, new products or entry into new markets have no choice but to explore alternative funding sources. Such alternatives range from licensing and/or outsourcing transactions to joint venturing with a strategic partner."
As explained in the article, "A strategic partner could be a potential competitor, large customer, market player in a complementary industry or large player in the same industry. The possibilities for a joint venture partner are endless, although choosing the wrong partner or the wrong structure carries a significant amount of risk."
Gurwin goes on to discuss three detailed steps to follow when choosing to enter into a partner relationship:
- Identifying a Venture Partner and Getting Started
- Structure — Creating the Relationship
- Issues for the Operating Agreement — From Marriage to Death Do Us Part or Divorce