Some invest in cash, while others invest their sweat.

There are individuals who are willing to work for a low salary in the initial stages of a company in exchange for a share of company ownership. This is sweat equity.

Sweat equity is an investment in a company, usually a startup. But instead of cash, a person contributes labor or services. This gives someone without sufficient funds the opportunity to be part of the company. Those who allot time and effort to the venture can expect to get profitable returns eventually.

Other interesting terms…