Joint Venture Investments
A Joint Venture (JV) is when two or more parties (individuals or companies) come together to invest in and operate a business project — sharing resources, risks, profits, and control.
It’s like teaming up for a specific business goal instead of going solo.
🧩 How It Works
- Partnership Agreement – The parties agree on how much each will invest (money, assets, or expertise).
- Create a JV Entity (optional) – They might register a new company just for the project, or simply sign a contract between them.
- Execute the Project – Both sides contribute their agreed parts (e.g., one provides funding, the other handles operations).
- Profit Sharing – After the project earns revenue, profits are divided based on their agreed share (not always 50/50).
- Exit or Continuation – Once the project ends or goals are met, they can end the JV or continue if it’s profitable.
⚖️ Key Features
- Shared Risk & Reward – Everyone benefits or loses together.
- Defined Purpose & Duration – Usually formed for a specific goal (e.g., build a property, launch a product).
- Combined Strengths – One partner may have capital, another has expertise, market access, or connections.
- Separate from Mergers – It’s a partnership, not a full company takeover or merger.
✅ Why Businesses Enter a JV
- To expand into new markets without full risk.
- To access local knowledge or expertise.
- To share costs and technology.
- To leverage each other’s strengths.
