Ask HN: Competitor wants to license components of our technology

7 pointsPabloOsinaga4 comments

Competitor is the company with the most funding in our space.

An acquisition is out of the question as they can't pay what we would sell for.

But they are interested in licensing some components of our technology/product.

While our initial inclination is saying no - under what circumstances do you think it would make sense?

> what circumstances do you think it would make sense?

Increased cash-flow, future partnership opportunities, market validation, etc...

those are certainly some of the benefits, while the cons being equalizing your product advantage, getting distracted, and a few more.

I guess the question is under what circumstances do you think the pros outweight the cons ?

The Pro vs Con calculus can be subjective. Ultimately, knowing the people involved will be the critical success factor.

> under what circumstances do you think it would make sense?

If you can keep your brand when your competitor is licensing your components. That way you make your competitor act like your sales.