• The software development organization assumes the costs (partial or all) to develop a web solution with a business partner
• The business partner agrees to offer an equity position in the business venture in return for this development investment

Each of these equity partnership agreements would need to be customized to ensure that both the software development organization AND the business partner mutually benefit from the terms.  In the end, this type of agreement would need to be a "win-win" for both parties.

Not all web application solutions are candidates for this type of partnership arrangement.  The software development organization must feel that the development cost risk can be mitigated somewhat by the product or service.  On the other hand, the business partner must feel comfortable that the value of the equity which is released to the software development organization for the application solution produced.

These types of arrangements can be especially attractive to business partners whom are trying to manage capital expenditures or have limited cash flows.

As with other partner/customer relationships, "Non Disclosure Agreements " should be put in place prior to discussing any customer or partnership agreement (equity or otherwise).