Sweat Equity 101

Sweat equity is the non-monetary investment that owners or employees contribute to a business venture. Startups and entrepreneurs often use this form of capital to fund their businesses, by compensating their employees with stock rather than cash — which also helps to align risk and rewards. In real estate, it refers to value-enhancing improvements made by homeowners to their properties.

Sweat equity — which is a form of non-cash capital — is also known as equity compensation, and can take the form of stock options, restricted stock units (RSUs) and performance shares.

Read more: Sweat Equity https://www.investopedia.com/terms/s/sweatequity.asp#ixzz5SgrwepG9
Follow us: Investopedia on Facebook


Read more: Sweat Equity https://www.investopedia.com/terms/s/sweatequity.asp#ixzz5SgrReSxm
Follow us: Investopedia on Facebook


Sweat equity is the most valuable equity there is. -Mark Cuban

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s