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Sweatequity. This unpaid work component is sized in dollars, added to any funds contributed, to represent the total contribution of a founding partner and converted to an equity ownership percentage in a new startup. This term is used to describe non-traditional ways to incent growth such as social-media and viral marketing.
Gadea leveraged his connections in Silicon Valley to seed viral distribution of the product, which, in turn, generated the revenue to hire engineers and scale the company. Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweatequity.” million. “CXL
Gadea leveraged his connections in Silicon Valley to seed viral distribution of the product, which, in turn, generated the revenue to hire engineers and scale the company. Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweatequity.” million. “CXL
We’re testing a viral loop, direct sales, and affiliate marketing.&# But starting a conversation with, "Just sign here" is simply unrealistic. Would you ever say to an investor, “I don’t trust you with my signup conversion rate?&# I think the only misunderstanding here is the scope of that first conversation.
I have a ready excuse for squeezing in a little “sweatequity” — I need to get in shape to know my customers’ issues. Leave a comment and join the conversation. But take this too far and your productivity drops off the cliff. As founder of a run/bike app startup, I can write off my workouts. What are your fitness tips?
It’s simply an untenable situation to expect the technical co-founder to assume the full burden of risk through sweatequity. If you’re not willing to put money into the project, it tells me you’re not committed and aren’t willing to share the risk. Check out our most recent business articles and resources.
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