Sweat Equity is a Great Tool for Startups!

- July 26, 2012 2 MIN READ

A new business is often built on sweat equity and financing from investors. It is the term used to define the contributions of a member of a company, whether it is an employee or investor. In most cases, the term is used for the owners of new businesses who often work without compensation in the early years before the company is profitable. Sweat equity can also be applied to employees of a company who accept reduced wage or no pay at all in exchange for a level of ownership in the company.