The Snake Keeper Blog

It is a fair way to recognize all non-monetary contributions of employees to the company. Since it is an intangible business, the valuation of Sweat`s own funds must be carried out with the utmost care in order to sufficiently compensate an employee`s contribution. The terms of Sweat Equity`s remuneration are regularized by a sweat equity agreement. The easiest way to calculate the solder capital is to divide the investor`s contribution by the percentage of equity he represents. In this case, 300,000 $US are divided by 10% $3 million. Since your investment was already $2 million, you just created $1 million in welding capital that will help you recruit new earned talent. And a sweatshirt-equity agreement will legalize the offers. Imagine you`ve invested $2 million in your startup. An investor offers an additional $300,000 for 10% equity….