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| Resources for Entrepreneurs | Entrepreneur's Glossary | ||||
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Sweat Equity
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Definition of Sweat EquityThe term Sweat Equity refers to the ownership share in a company resulting from work rather than capital investment.
In a first round venture capital negotiation, the founder will argue that their sweat equity is worth a lot, as this will increase the pre-money valuation and minimize the founder's ownership dilution when the VC invests. If you are an ambitious entrepreneur or an aspiring executive looking to get involved with a startup, please take the time to learn more about Gaebler Ventures.
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