startup ownership Archives

“Sweat equity is the best kind of startup capital.”— Mark Cuban
This is a huge question for startup founders. If you are a founder, you know what I am talking about: how much of my startup should I give away?

Definitioner

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Hyper Text Transfer Protocol Secure

Bounce Rate

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

Capital

Financial capital is a term that can refer to the money exchanged between entrepreneurs and investors during a business deal. Entrepreneurs need to raise capital for their startups while investors can provide them with the needed capital (or funding). Financial capital usually comes with interest, and new business owners can use their financial capital in purchasing real capital (or machinery or equipment) for their new business.⁴

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INFOGRAPHICS

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