Sweat Equity

April 23, 2017 by Alexa Cleek -

Sweat equity is the equity or ownership interest created in a startup by it’s founders as a result of their contributions in the form of hard work, labor and toil.⁶

Alexa Cleek

Definitioner

Sweat Equity

Sweat equity is the equity or ownership interest created in a startup by it's founders as a result of their contributions in the form of hard work, labor and toil.⁶

Startup

A startup is a new business venture / enterprise in its initial or early stages of development. These stages include the concept, seed, early, growth and mezzanine stages.⁶

Equity

Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or “units.”³
This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares). The more equity purchased, the greater the ownership.⁴