What is Sweat Equity? Definition, Tax and Vesting
Sweat equity is ownership given for work instead of pay. How it is documented, why the IRS treats it as compensation, and what vesting changes.
Sweat equity is ownership given for work instead of pay. How it is documented, why the IRS treats it as compensation, and what vesting changes.
Gross burn is all the cash going out. Net burn is what is left after money comes in. Here is how the two differ and where both numbers mislead.
The accelerator vs incubator difference comes down to time, equity and who funds the program. Neither word is defined, so check the contract.
A startup accelerator is a fixed-term cohort program that trades support and often capital for equity. What it provides, and what it takes.
The seed vs Series A difference is not round size. It is what investors underwrite, what the company signs, and who gets a vote afterward.
A Series A is a startup's first priced round of preferred stock. What the share class contains, what changes in governance, and what it costs founders.
Seed funding is the round a startup raises to turn early evidence into a real business. What it buys, who invests, and what the company signs.
Pre-seed funding is the first outside money a startup raises, before product or revenue. What it pays for, who provides it, and what a SAFE actually is.