Websweat equity is trading labor for equity or an interest in the company. What happens when you are paid your sweat equity? The answer is simple. Websweat equity arrangements directly impact a startup’s valuation by accounting for the value of human capital and labor. As an entrepreneur, determining. Websweat equity is generally considered all the voluntary unpaid work that is often required in the first years of a new business. This work is usually unpaid because. Webthrough sweat equity, individuals invest their time and effort into building something meaningful, whether it be a home, a project, or a dream. Habitat for humanity of.