It’s very common for life sciences companies to enter into strategic partnerships, whether they’re small start-ups or large established businesses, because it’s an effective way to share expertise, resources, and funds. As a small company or start-up, especially if you are in the research and development phase, you require funding to survive. This can come in the form of investors and partnerships.
Having worked with many small companies in the process of completing strategic partnership deals with larger companies, I know how challenging it can be to negotiate the needs of both companies and their investors. Each perspective needs to be considered in order to gain the full benefits of a partnership.
To avoid common partnership pitfalls, put yourself in the shoes of each party involved to make sure everyone’s needs would be met. Remember that a deal can only work if both sides have a chance to accomplish their corporate objectives. The goals for your company in a partnership should include:
Remember that good deals take time, dollars and effort to complete. Six months to a year is not uncommon. Entering a strategic partnership can be an immensely positive and profitable experience if executed correctly and with great care. All parties should benefit from the deal, including investors. And although your motivations behind the deal might differ, make sure to define a joint vision of the venture in order to align your purpose as a team.
Looking for partnership opportunities in the life sciences industry? Check out Ashton Tweed’s networking page for upcoming partnership events.
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