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Strategic Partner Deal Points

Has anyone done a deal with a strategic partner where they've provided money and distribution at an early stage? If so, on the investment, did you give them equity? If not, how did they treat the investment? And on the distribution side, did you revenue share? I'm looking for any case studies to structure these deals.

3 Replies

Scott Sanchez
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Scott Sanchez Entrepreneur • Advisor
Director & Lead Cloud Evangelist at Rackspace // Business Strategy // Product // Marketing // OpenStack
I've done these types of deals in both early stages companies AND with early stage products in well established companies. Is the investment really just them investing in taking your product to market as a reseller, or are they giving you cash for product development? Are you treating it like an OEM deal? Resale? Is it an exclusive partnership where they have protected rights to your product for a period of time? Are they improving their own product or position by adding yours or is this a new line of business/revenue for them? How big of a channel do they really have relative to yours? How much is that worth to you? Are there other companies you can approach that might be a better channel or partnership for you? A simple example is on the TV show shark tank. Entrepreneurs often are happy to give up 25% equity or more for a small round of (often fairly meaningless) cash, but access to sell their product through a massive retail channel like QVC or Walmart, where they'll sell to those retailers at wholesale prices but move tremendous volume they would likely never have reached themselves. We're probably not talking about you selling some kind of 'as seen on tv' novelty invention, which makes the situation even more complicated.

So, basically I have lots of questions since every deal like this is unique and there's not a template I can give you to make it successful for you. :)

Happy to give you some more pointed advice if you can give me some more detail/context...

-Scott
Anat Baron
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Anat Baron Entrepreneur
Entrepreneur, Keynote Speaker, Filmmaker, Disruptor, Problem Solver, Human Sponge and Creative Thinker
Scott,
I understand that there are no templates because every case is different. This is a complex deal with many moving parts. I was just wondering if any startup founders on here had done these type of deals - taking money and distribution support from a major corporate entity (one of mine mine is $15B in revenues) - and what their experience was like.
I'm not really seeking specific advice here on the deal structure. It sounds like if I was, I should contact you directly with specifics. It sounds like you have a lot of experience in that world.
Thanks for responding!
Anat
Anat Baron
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Anat Baron Entrepreneur
Entrepreneur, Keynote Speaker, Filmmaker, Disruptor, Problem Solver, Human Sponge and Creative Thinker
Hedva,
I'm not sure I understand your statement. we haven't sent out emails or links. Can you please elabroate.
Thanks,
Anat
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