Sweat Capital
Content
Definition
Sweat Capital, similar to sweat equity, represents the non-monetary investment made by founders and early team members in the form of labor, effort, and dedication to the startup, contributing to its value.
Usage and Context
Sweat capital represents the non-cash contribution of labor and effort made by founders and early team members.
Frequently asked questions
- What is a sweat equity agreement? A sweat equity agreement specifies how much ownership is given in return for work or services.
- What is the difference between sweat capital and sweat equity? Sweat capital is the effort or labor put into a startup, while sweat equity is the ownership stake earned as a result of that contribution.
- What is sweat equity for founders? Sweat equity is ownership earned by founders through their hard work and contributions instead of monetary investment.
Benefits
Sweat capital represents the non-monetary contributions of founders and early team members, like effort and dedication.
Conclusion
Sweat capital represents the value created by founders and early team members through their hard work and dedication.
