My company has a huge set of products however I need funding for a particular product. Should I form a separate company for that product or is there a provision to own equity on a product alone? This product has a separate, fully prepared earning plan and and is in the marketing phase.

Absolutely. I'm echoing a previous answer made as this is called a Joint Venture partnership which is different then a partnership of a company. In a joint venture, you can have the investor participate in a specific product or a separate division of a company (which should have it's own separate P&L - Profit and Loss report). Have your lawyer draft up an agreement laying out how the JV structure is being formed, what product and financials it's related too and most important how the exit strategy would look like. We use this strategy in most of our real estate investment holding and it works great.

If I can be of any assistance in providing more clarity to this, please let me know.

Hope this helps and good luck!

Michael Ponte

Answered 4 years ago

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