Simply put, Strategic Alliances in business are when two or more businesses benefit from each other’s assets for the purpose of mutual gain–a classic “win, win” scenario. Strategic Alliances occur every day, but as it relates to Access to Capital, Strategic Alliances are a means of capturing funding or improving cash flow.
A list of options are below, many of which can call for up-front fees, options fees, or binding contracts that result in cash for the business. All of these options should be accompanied by thoughtful contracts, many of which are standard. With that in mind, careful consideration should be given to the needs of both parties to insure the contracts consider everything that may go wrong or right!
Early forms of Strategic Alliances often include:
- Beta Trials
- Corporate Trials
- Research Trials
- Joint Development Agreements
- Research or Development Contracts
- Joint Ventures
When dealing with proprietary information or technology, confidentiality agreements (CAs) or mutual non-disclosure agreements (MNDAs) should also be in place.
Other forms of Strategic Alliances include:
- License or Licensing Agreements
- Reseller Agreements (Distribution, Retail, Wholesale, Dealer, Third-party Distribution)
- Lease or Rental Agreements
- Consulting Agreements
While these lists may seem simple, the forms alliances take can vary widely as do the terms. Speaking with an experienced advisor is recommended.