What is the ratio of equity received for sweat equity vs. cash investment in a new venture?
Gust
DECEMBER 20, 2012
There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. The bottom line is that cash is cash is cash, and everything else is “not cash” The reason is that cash is fungible, which means it can be interchanged for everything else, from programming skills to vacations on the Riviera.
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