Model

SWEAT EQUITY

Model

SWEAT EQUITY

Human Capital Investments

Human Capital Investments

ASSUMPTIONS

ASSUMPTIONS

Of Sweat Equity Model

Of Sweat Equity Model

Salary

Valuation-Based Settlement Model

Settlement of partners takes place through shares in the company and participation in its future profits.

Collaboration

Active Operational Partnership

Both parties are committed to the development of the enterprise through contributions of work, knowledge, and contacts.

Long-termness

Long-Term Perspective

The focus on building the value of the enterprise over time is the foundation of cooperation, especially when taking stakes in companies at an early stage of development.

DETAILS

Sweat Equity

Sweat Equity is a model of cooperation, where financial capital replaces the contribution of work and competencies. The investor (e.g., Profitova) brings knowledge, skills, and commitment, becoming an active participant in the process of building the company's value.

The traditional investment model differs from the Sweat Equity model. In the traditional model, the investor provides cash capital in exchange for shares. This often involves a position with influence over the company's operations, acting as a coordinator or managing partner.

In the Sweat Equity model used by Profitova Group, the investor brings work, skills, experience, know-how, and a network of contacts. The business partner is an active partner in the development of the venture.

The Sweat Equity model also differs in the perception of potential partners.

Traditional investors focus on companies with the potential for rapid growth (e.g., new technologies). The model used by Profitova Group allows recognizing value even in enterprises at an early stage of development or with a different profile of innovation.

DETAILS

Sweat Equity

Sweat Equity is a model of collaboration, where financial capital complements or replaces the contribution of labor and skills. The investor (e.g., Profitova) brings knowledge, skills, and commitment, becoming an active participant in the process of building the company's value.

The traditional investment model differs from the Sweat Equity model. The investor provides cash capital in exchange for shares. Often, they hold a position with influence over the company's operations, acting as a coordinator or managing partner.

In the Sweat Equity model used by Profitova Group, the investor brings work, skills, experience, know-how, and a network of contacts. The business partner is an active participant in the development of the venture.

The Sweat Equity model also differs in the perception of potential partners. Traditional investors focus on companies with the potential for rapid growth (e.g., new technologies). The model used by Profitova Group allows for recognizing value even in companies at an early stage of development or with a different profile of innovation.

DETAILS

Sweat Equity

Sweat Equity is a collaboration model, where financial capital complements or replaces the contribution of work and expertise. The investor (e.g., Profitova) brings knowledge, skills, and commitment, becoming an active participant in the process of building the company's value.

The traditional investment model differs from the Sweat Equity model. The investor provides cash capital in exchange for shares. Often, they take a position with influence over the company's activities, serving as a coordinator or managing partner.

In the Sweat Equity model used by Profitova Group, the investor brings work, skills, experience, know-how, and a network of contacts. The business partner is an active participant in the development of the venture.

The Sweat Equity model also differs in the perception of potential partners. Traditional investors focus on companies with the potential for rapid growth (e.g., new technologies). The model used by Profitova Group allows recognizing value also in businesses at an early stage of development or with a different profile of innovation.

NEWS

NEWS

Profitova Group

Profitova Group

ELEMENTS

Sweat Equity

The Sweat Equity model requires the operational involvement of the partner. The investor assumes defined tasks and responsibilities. They bring knowledge, skills, contacts, and commitment.

Collaboration in the Sweat Equity model proceeds according to partnership principles. The structure prevents the domination of one party.

The Sweat Equity model operates without the flow of financial capital from the partner to the investor as part of the service fee. Engaging financial capital by the partner is not a condition for establishing a relationship. The partner's compensation in the Sweat Equity model consists of a share in the company's profits, defined in the agreement. The model does not involve subscription fees.

The selection criteria for partners in the Sweat Equity model differ from those of capital investors. Classical capital investors select projects based on profit-generating potential or the degree of innovation. Profitova Group also analyzes other enterprise profiles.

1

Duties

Common tasks and responsibilities.

2

Rules

Partnership relations without the dominance of one side.

3

Costs

Cooperation without one-time or subscription fees.

4

Risk

Settlement based solely on the company's income.

ELEMENTS

Sweat Equity

The Sweat Equity model requires the operational engagement of the partner. The investor undertakes defined tasks and responsibilities. They bring knowledge, skills, contacts, and commitment.

Collaboration in the Sweat Equity model proceeds according to the principles of partnership. The structure prevents the domination of one party.

The Sweat Equity model operates without the flow of financial capital from the partner to the investor in exchange for service fees. Engaging financial capital by the partner is not a condition for establishing a relationship. The partner's compensation in the Sweat Equity model constitutes a share in the company's profits, defined in the agreement. The model does not apply subscription fees.

The selection criteria for partners in the Sweat Equity model differ from those of capital investors. Classic capital investors select projects based on profit-generating potential or the degree of innovation. Profitova Group also analyzes other business profiles.

1

Duties

Common tasks and responsibilities.

2

Rules

Partnership relations without the dominance of one side.

3

Costs

Cooperation without one-time or subscription fees.

4

Risk

Settlement based solely on the company's income.

ELEMENTS

Sweat Equity

The Sweat Equity model requires the operational involvement of the partner. The investor takes on defined tasks and responsibilities. They bring knowledge, skills, contacts, and commitment.

Collaboration in the Sweat Equity model operates according to partnership principles. The structure prevents the domination of one party.

The Sweat Equity model functions without financial capital flows from the partner to the investor as part of the service fee. Engaging financial capital by the partner is not a condition for establishing a relationship. The partner's compensation in the Sweat Equity model is a share of the company's profits, defined in the agreement. The model does not apply subscription fees.

The criteria for selecting partners in the Sweat Equity model differ from those of equity investors. Classical equity investors select projects based on profit-generating potential or the degree of innovation. Profitova Group also analyzes other business profiles.

1

Duties

Common tasks and responsibilities.

2

Rules

Partnership relations without the dominance of one side.

3

Costs

Cooperation without one-time or subscription fees.

4

Risk

Settlement based solely on the company's income.

WE ARE BUILDING A COMMUNITY

WE ARE BUILDING A COMMUNITY

Enterprise

Enterprise

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