Sweat equity: value through dedication and commitment

February 15, 2024

Sweat equity refers to the value contributed to a startup or company through the time, effort and commitment that founders and team members invest without immediate financial compensation. This form of equity reflects the intangible contribution made through hard work, innovation and creative problem solving, and is often a critical factor in the early success and growth of the company. By recognising sweat equity, startups can motivate and retain talented employees by offering shares in the company in return for their significant contributions to building the business.