What is "Joint Venture" meaning?

A joint venture (JV) is a business agreement in which two or more companies come together to work on a specific project or business goal. Each party contributes resources, such as capital, expertise, or technology, and shares in both the risks and profits.

Example

"The two tech companies formed a joint venture to develop a new AI-powered product, pooling their resources for research and development."

How is "Joint Venture" used in business?

In business, joint ventures are used when companies seek to leverage complementary skills or resources without fully merging. A JV allows businesses to enter new markets, access new technologies, or share the financial burden of risky ventures.

Pro Tip

When entering a joint venture, clearly define the terms, including profit sharing, decision-making authority, and the exit strategy, to prevent future conflicts.