Startup words, jargon and slang, business english

What is sweat equity?

Especially when starting a business as a startup, a lot of unpaid labour goes into making everything work before the company starts making a profit. This effort, time and energy is called Sweat Equity, where this labour is put into a project without any monetary compensation.

In some cases, workers that help out at this stage are rewarded with shares of the company from the ESOP in exchange for their work.

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