Sweat Equity

A modern socially acceptable form of labor exploitation where the allure of an infinitesimally small probability of success entices normally intelligent people to freely exchange their time, skills and social capital for the ridiculously accessible status of "working on a startup."

Typically equity-for-anything, though the most vivid examples are commission-only sales roles: if you take on all of the up front risk to get people interested in our product (with zero effort from us), you might make a little money in the process.

Added by svbiz over 9 years ago

The equity you put in for your hard work. When an investor uses this term, it's normally a red flag and it becomes obvious that they are probably not a professional investor.

I'm takkkin' 45% percent of your comapany cuz I invested 10k into your app. You divide the other 55% amoung your founders as sweat equity.

Added by yungsnuggie about 9 years ago