I own a startup, went through an accelerator and we have reasonable traction, even though we are bootstrapping right now. The growth rate is approx. 20% monthly in revenue, and we currently have 800 clients.
I am in talks with another startup doing something similar in another country and we talked about doing a Joint-Venture (not acquiring).
What are your thought about this kind of partnership?
Joint-ventures look good on paper, but rarely work out well.
Wait a year, and if you still like what you see acquire them outright. I urge you to forget about this joint-venture foolishness.
You need to give more context on your joint venture. Is it more of a biz dev partnership where you refer each other in your own markets or are you building new solutions together?
Hi there,
Thanks for your answer. Buying them is not an option, as they have more funding. About the second answer, it would be more of a business partnership yes. Apart from exits, I don't know what it is usually done.
Thanks!
Business partnerships usually mean that one company becomes the client of another to address a new market or same market in a different way. If that's not the case, then you're helping each other go after each other's market. That would be pretty risky if you ask me.