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The different types of startup partnerships

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Startups partnership

Are you looking for a reliable partner to get the most out of this collaboration for your project? In fact, proportional sharing of duties and potential profits are not the only viable partnership model for any business, including startups. Below we share the most popular options for such partnerships.

6 Models to Consider

So, what startup partnership models exist? Let’s figure it out.

  • Sponsorship relationships. With this type of startup partnership, you choose a company or separate group of business owners who will fund your project and, at the same time, share their knowledge base to make it work more efficiently. Please note that during its implementation, your personal income from the project will most likely be minimal, moreover, you are unlikely to be able to dictate your terms of this cooperation.
  • Mentorship. This type of startup collaboration involves the deployment of a specific mentoring program with fixed investment commitments. At the same time, mentoring is of little benefit to investing parties since they often have to deal with low-profit projects without protection from any risks.
  • Startup accelerators and incubators. Incubators and accelerators bring together startup companies and mature entrepreneurs (as well as successful startup companies) who pass on the knowledge of their successful business models and investments to the first. However, startups that choose this approach often have to wait years to get noticed.
  • Corporate venture business. With this approach, the owner of a startup is a company with a certain period of existence on the market, which has decided to create a new startup project to open new business models and cover new business niches and audiences. Each of such companies in partnership are fully responsible for all risks associated with the implementation of such projects.
  • Partnership with an even distribution of profits and liabilities. With this type of partnership, as the name implies, the project obligations and potential profits (as well as risks) are distributed in proportion to the efforts and investments allocated to the creation and development of the project.
  • Hiring an outsourcing partner company. This business partnership model will save you any prospect of sharing the potential income from a startup and allow you to independently manage the progress of its development. The only negative is that you will be responsible for all the financing of this project.

Final Thoughts

We hope that you were able to decide which of the above partnership models is the closest for you and now it can be effectively implemented into your business strategy. By the way, if you decide to choose the last option of cooperation, you can contact us Currently, we have more than a hundred successfully launched projects, becoming startup partners for dozens of them. Moreover, we have devoted more than 240 hours of consulting to startups, effectively helping them to take a stable market position. If you want to make us your startup partners, please, write to us to discuss the details of your project right now.

I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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