In Japan, the number of newly created biotechnology start-ups has increased dramatically since 1999. It is expected that more than ten bio venture firms will achieve initial public offering (IPO) status toward the end of 2004. Complementary and alternative medicine (CAM) start-ups are included in those IPO candidates. Also, the number of newly created CAM start-ups is expected to rise over the next few years, and their presence in the market will strengthen. It is significant to understand the nature of business in the CAM area in order to manage CAM start-ups successfully. Especially, the importance of creating alliances with outside parties for CAM start-ups is highlighted and analyzed in this paper.