PracticeConsultingTechnology businesses opt for joint ventures

Technology businesses opt for joint ventures

More than 40% of technology businesses will be using joint ventures to boost revenues over the coming year. The corporate assets they are committing are significant, and are expected to nearly double within the next 24 to 36 months. Yet despite these high stakes, those involved in joint ventures may be under-planning - both when screening prospective partners and when planning an exit. These are highlights from the latest PricewaterhouseCoopers Technology Barometer, released today.

Joint ventures involve the sharing of risks and rewards in an enterprise or project co-owned and operated for mutual benefit by two or more business partners. One third (33%) of technology businesses are current joint venture participants, involved in an average of 3.3 over the past three years.

And an additional 9% are planning an average of 1.6 new joint ventures over the next 12 months.

Technology businesses participating in or planning ventures are committing a composite 9.34% of their business assets to these efforts – including people and materials. And this allocation is expected to nearly double to 17.34% over the next few years. For large firms, it is planned to grow to 13.49% of corporate assets, up by 69%; and for smaller firms, it is expected to surge to 22.01%, an increase of 99%.

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