Sweat Equity

Sweat equity refers to the value created when individuals contribute their time, effort, and skills toward building or improving a business or project, instead of financing with cash. Essentially, it's the ownership stake gained through hard work rather than investment money. This concept often applies to startups or partnerships, where founders or team members earn equity proportional to their contributions. Sweat equity rewards dedication and effort, helping the business grow without immediate financial input. It's a way to recognize and incentivize the labor that adds value to a venture.