Part 16/20 - Twenty Questions You Will Be Asked By Venture Capitalists (If You Get That Far)

By Laurence K. Hayward

This is part sixteen of a twenty part series on this topic.

16. What alliances or partnerships have you entered (e.g. joint ventures, marketing alliances, licensing arrangements, selling/distribution agreements, channel partnerships, software agreements, etc.)?

It is important to remember that alliances can be assets as well as liabilities. VCs will want to know if any of your alliance agreements have compromised your intellectual property claims and if the company has any outstanding obligations to third parties. Some alliances can even have an effect on how revenues are recognized. When in doubt, speak to your lawyer and accountant about these issues.

In the marketing section of your business plan, demonstrate how alliances may have helped your company lock-up certain distribution or sales channels for your products and services. Do any of your alliances provide a competitive advantage? Do they create barriers to entry? Do they help you reach customers more efficiently? See question 15 covered in our last post for additional information on the value of alliances.

Laurence K. Hayward is the Founder and CEO of TheVentureLab. To learn more about him follow the link here