What is a Joint Venture (JV)?
A joint venture is a specific type of strategic alliance where two or more companies create a brand new, legally separate business entity. The parent companies contribute resources to the JV and share in its revenues, expenses, and control. A JV is a more formal and legally complex arrangement than a simple co-marketing agreement. Companies might form a JV to enter a new foreign market, to combine their expertise to develop a new technology, or to share the high costs and risks of a major project.