A consortium is a grouping of two or more organizations with a common business objective that is realized through the business network. The architecture of this network is as follows:

These organizations will often be in the same industry or in closely related industries. The point is that their association is derived from a level of synergy in their processes and a common/shared benefit in cooperating through the consortium.

A key feature of a consortium is that each member retains their legal entity and status. Through the creation of the consortium, they will typically enter contractual and legal agreements that will guide the governance, activities, and investments required to turn their vision into a reality.

We make a distinction between founders and members since the former will have typically faced a similar situation as the organization adopting a founder-led network model. They will have faced similar issues, risks, and benefits as the founder-led network, but they will offset the risks through expanded industry participation. Consortium founders may also choose to monetize the network as other organizations join.

Additionally, members of a consortium may have taxation benefits, contribute to improving the regulatory posture of the industry, and create a voice that has increased influence. However, they are also exposed to potential liability and nonperformance, where one founder may not be able to contribute to an equivalent level as the other founders.