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Joint Ventures

A marriage made in heaven…? Or hell?!

Contracts are often about one party establishing control over the other party. What if two equal partners are collaborating on something together?
Photo Courtesy of AFGE – CC-BY-2.0

Desired Benefit

Join forces to achieve a goal that neither party could achieve alone without defining a hierarchy between the partners.

Structure

Two partners invest in a product of joint interest. Money is unlikely to flow directly between the partners in the development phase, but each party must have a ROI, which may come from revenue sharing or just benefits from using the software.

Scope

Defined to suit the needs of the partnership.

Risks

Two of everything. Decision chains can get long. Rivalries can develop between the teams. Different models for extracting value from the product can lead to different priorities and differing willingness to invest. What happens if one of the partners doesn’t contribute as expected?

Tips

Treat the joint venture as a separate entity: One team, co-located, with development and product marketing/product owner role. Think realistically about friendly and not so friendly separation scenarios.



You can get the whole book now, or you can read it a chapter at a time as I publish it here under the label ten contracts. To download the e-book or pre-order the physical book visit https://saat-network.ch/ten

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