article thumbnail

What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. Market value doesn't equal the sum of sweat equity invested by you and your partners.

article thumbnail

8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Burn Rate 207
article thumbnail

Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. And I tried to evaluate the idea and figure out: What did the founder really need here? Was it a Startup Founder Developer Gap ? And do I fit as a Part-Time CTO , Technology Advisor , CTO Founder , Acting CTO ?

article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." The first few people into a startup are on a spectrum of founder vs. early employee. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.

article thumbnail

How to Hire for Sweat Equity…

www.drowningamerican.com

Next → How to Hire for Sweat Equity…. Pingback: How we Hire for Sweat Equity (Part 2)… « Drowning American. I don’t have a technical co-founder on my team but am apt in graphics design and have a lot of ideas bursting out of my head. Musings on Life and the American Dream. Post navigation.

article thumbnail

Why We Shouldn’t Be In Love With Startups 

ReadWriteStart

insert founder number] of the founders dropped out of [insert Ivy League school]. We wish we were the founders, experiencing this testosterone-fueled melodrama of success. No, I prefer boring businesses and established companies that are not seeking their own sweat equity for services provided.