Sweat equity

{
  "id": "MLC-T-LAW-004817",
  "term": "Sweat equity",
  "field": "Law",
  "definition": "A non-monetary contribution to an enterprise or property, representing the value of labor, skill, or effort invested. In a business context, it is exchanged for an ownership interest, or equity, in the company, particularly in startups. Unlike a capital contribution, its value is not based on cash but on the fair market value of the services rendered.",
  "url": "https://mlchart.com/terminology/law/sweat-equity/"
}