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. A better way to think about this is to separate two aspects of the “sweat” that one puts into a new venture. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70
Let's personalize your content