Good example of use case in the other response. Other use cases: - you want a seat at the board or at least a hotline to someone up the chain in a key partner

Good example of use case in the other response. Other use cases: - you want a seat at the board or at least a hotline to someone up the chain in a key partner company. This will give you insight and influence in your key partner's plans, health, future products, as well as CI. - drive costs down. Buying a stake in a supplier doesn't necessarily mean you will pay less, but you get some of it back through your stake. - getting access to know-hows/technology/ consulting/distribution. - reimbursement for know-hows/technology/consulting/distribution. i.e. you a have substantial distribution channel in a vertical market, but developing it does not align with your focus. You can sell it at a big discount, squeeze it as much as you can, or lease/sell it to a company which will find a tremendous persistent value in it. Compensating you according to the value they gain in hard currency is difficult, even impossible for smaller companies. Getting equity or options in the partner company while leasing/selling your asset to them will ensure you get maximum value out of an under utilized asset.