How does it work?
We set-up a 50/50 joint-ventures in Singapore that operates under the start-up name in the territory.
Start-up gets 50% of the joint-venture in exchange of giving the joint-venture exclusive rights of its technology for the assigned territory. Start-up does not need to contribute to any funding to the joint-venture.
Sanpei Ventures gets 50% of the joint-venture in exchange of funding to the project and being in charge for day-to-day operations. We assign team members to the project and allocate all the necessary resources to accelerate the growth locally.
Although we are fully responsible for day-to-day operations, key strategic decisions are jointly decided together with the start-up.
We are committed to offer total transparency over operations and give to the start-up full visibility over the joint-venture situation at any given time.
What resources start-ups need to provide?
Our team will need some initial support to understand the solution and start selling as quick as possible.
As the solution will need to be localized to fit local market needs, our team will work together with the start-up to make that happen.
Key strategic decisions are jointly decided, so we expect fluid communication and coordination on key aspects of the venture.
What is the legal structure?
We initially set-up the joint-venture in Singapore and try to keep the structure as lean as possible, using Sanpei Ventures structure to support any local business needs in China.
On later stages we set-up a fully-owned subsidiary in China, and in any other territories if needed for local operations.
Singapore is ranked as the world’s easiest place to do business, and it is a strategic location to many international companies that operate in Asia. Its legal system is based on English common law and has one of the most progressive and pro-business tax systems in the world.
What if the start-up wants to take back control?
We offer a Call Option that can be executed at any given time. Start-up can buy back our equity and take full control of the joint-venture, with its established business and dedicated team.
All the exit mechanisms and valuation methods are agreed beforehand during the joint-venture set-up.