Is a non-monetary contribution to a project in the form of value-enhancing improvements…
…as opposed to financial equity, which is a contribution in the from of economic capital.
In a partneship, some partners may contribute to the firm only financial capital and others only sweat capital. Similaryly, in a startup company formed as a corporation employess may receive stock or stock options, becoming thus part-owners of the firm.
Sweat funding is one of our main areas of expertise.
Sweat Capital is an intellectual capital fund or “sweat fund” based in Latin America that offers personalized investment opportunities in innovative companies, and manages risk through incentivizing collaboration and sustainable development values in our portfolio.
It was founded in Costa Rica, a country in route to become one of Latin America’s pivotal Entrepreneuship Hubs, due to its privileged geographic location and its continually growing development in the globla tourism industry, which results in a highly bilingual population with an intrinsic vocation for service.
Thanks to our unique quality of having no military, Costa Rica is a well-known for its political stability, finally positioning it as a key location for establishing strategic multinational business centers.
Promote sustainable entrepreneurship in Latin America while delivering impactful ROIs for our investors.
Develop personalized investment opportunities in trending markets, while managing risk through the incorporation of sustainable development values in our companies.
- Economic Growth
- Universal Access to Economic Opportunities
- Healthy Home Economics
- Environmental responsibility
- Reduction of Waste
- Responsible Consumption Promote Sustainable Agriculture
- Human Development
- Emotional Intelligence
- Sense of Purpose
- Gender Equality
- Good Health & Well-Being
During 2018 there were signs that in Latin America you could find enough talent and projects, what’s missing is the right structure to push the companies evolution and life cycle in the right directions to achieve investors, entrepreneurs and market expectations.
In July 2018 Establishment Labs became the first Costa Rican Company to trade their common stock on the Nasdaq Stock Market under the trading symbol “ESTA” following its initial public offering.
In September 2018, Walmart bought Cornershop, an on-demand grocery delivery service for the Latin American market for US $225 million.
VALUE CREATION METHODOLOGY
- Alignment of the Vision and Mission
- Validation of the core definitions
- Analysis of the revenue model
- Roadmap versus Milestones definition
- Promote purpose-driven companies
- Incentivize positive leadership & human development within companies
- Develop the product or service’s sense of awareness and contribution towards sustainable development
- Identify and activate strategic alliances
INVESTOR FRIENDLY CERTIFICATION
- Corporate Governance
- Corporate Structure
- Market response to the vision
- Clarity on the goals to achieve with a capital injection
SUSTAINBILITY MANAGEMENT AND REPORTING
STRATEGIC ALLIANCE ACTIVATION
THE INVESTMENT CLUB
- Access to investment opportunities based on the industry definition.
- Risk administration with an strategic involvement on the portfolio companies.
- Access to financial opportunities (i.e. contract discount or loans to portfolio companies).
- Monthly family members workshop on specific training topics.
- Option to invest the fee on services to Sweat Capital: Office Space, Legal services, Financial Analysts, Logistics, etc.
ACCESS TO CAPITAL
Sweat Capital has access to different types of investors with appetite for impactful projects in Latin America. Once a company of our portfolio is aligned with our Methodology Pillars we will introduce them with our investors based on the geography and type of capital needed.
- Latin America
- Family Offices
- Venture Capital Firms
- Non-refundable investment funds
- Private Equity