Aug 4, 2021 at 11: 09 pm

Why Tokenize Sweat Equity?

Scale ups need to enroll a series of advisors to be successful. They're working and sweating, but how do companies go ahead and compensate them?

Strategy Tools


Whether you’re an entrepreneur, advisor, executive, board member, or even a fund manager, you would be interested to find out what it takes to make scale-ups work. 

On Thursday, July 29th, Strategy Tools hosted a one-hour webinar “Why Tokenize Sweat Equity” with some of the world’s most experienced industry experts –  Kevin Monserrat (expert and founder of Consilience Ventures), Rick Rasmussen (UC Berkeley, Scale Up Coach), Scott Newton (Partner, Strategy Tools), and Christian Rangen (Founder and CEO, Strategy Tools) – to address important issues and challenges in the world of Scale-Ups.

This power-packed session left participants with some valuable ideas on how to break down barriers and grow with the help of new tools and technology. Here, we have compiled some important insights from the event in case you’ve missed it or just want to revisit it.  

The Scale-Up Journey

Startups and scale-ups can begin their journey in a number of ways. It can start with an idea that forms into a team, a team that has an idea, or simply a problem in general. 

In the end, they all work equally well as long as the next step is to identify a true problem with a realistic solution that is much better than what is out there in the market. 

The next key step in the journey is to go through additional customer and market validation to ensure product-market fit, and develop a scalable and repeatable sales process. It is at this point where things get interesting for professional investors. 

From here on, a company or scale-up can take a lot of different directions that are highly dependent on the executing team. At this point, a company can either go all the way from high growth express path to IPO to the other side of slow market uptake, valley of despair or potentially close down. 

Reflecting back on The Steve Blank Methodology or The Customer Development Method, it is important to get into each one of these gates to make sure the company doesn’t fail. 

“A lot of companies fail because they don’t have a product worth building, or they don’t have a repeatable, sustainable and scalable sales process,” says Rasmussen. This is often the point of scaling up at which professional investors become interested and a true company actually comes into being. 

The next step in the process is venture capital and structure which usually involves a series of limited partners to provide funds to a venture fund. That fund then uses general partners, venture partner associates, and others to make investments in individual startups. Money is made when those startups and scale-ups exit. 

So what does it take? Who else is out there?

In addition to the core professional paid general partners and venture partners, the best venture capital firms engage others such as advisors, mentors, and coaches to get to that product-market fit and go ahead and scale up. However, it doesn’t stop there. There are professional development experts, industry experts, and mentorship teams who talk about the overall scope of where things are headed.

Investors usually select the board of directors, CEOs, or co-founders, and they also hire executive staff such as attorneys, accounting firms, PR firms, recruiters, and others that are professionally paid. However, in order for a scale up to be successful, they also need to enroll and engage a whole series of advisors. So, how are these advisors compensated? 

What these advisors are providing is essentially sweat equity. They’re working and sweating, but how do scale-ups go ahead and compensate them? Companies can either tap into their personal networks or use karma points to pay forward, but that only goes so far as it doesn’t build wealth. They can pay cash, but scale-ups are inherently short on cash. Stock options are tricky since they have to be bought first. Companies can provide stock grants, but the grants usually exist in the company the advisors are advising in the first place. 

So, how do scale-ups solve that problem and compensate all the people who are helping them?

Solution: Tokenizing Sweat Equity

The world is all about entrepreneurship and helping the next generation solve its biggest problems, which is why it’s important to understand how companies can take off with less dependencies on money and how to tokenize sweat equity to develop growth. 

“When I was working at Microsoft, I observed that some companies were paying sweat equity. Some of the mentors and advisors of the program kind of realised that this is how the value was locked into sweat equity”, says Monserrat. 

What happens if you remove the need to raise money?

What entrepreneurs essentially need are publicity and profits. In order to obtain those two, they need people and people need money – otherwise they’re not going to help produce or advertise. 

In most parts of Europe and the UK, most of the VCs and IPs are conservative and ask startups to get traction before getting funded, which proves to be a real problem and puts companies back to square one. 

So how do scaleups get traction without people and money?

“At Consilience Ventures, we believe this is the real opportunity to tokenize sweat equity and get surrounded by the right people at the right time and get traction, money and funds which allows scale-ups to hire more people and retain them”, says Monserrat. 

One of the most underestimated things is the power of momentum. What first time entrepreneurs don’t realise is that they have the power, equity, and invisible ends to raise money – which is what’s so exciting about tokenizing sweat equity. If scale-ups use equity as money, all of a sudden they get the momentum and get the necessary funds. 

In simple words, tokenizing sweat equity is about turning equity into money. It gives scale-ups the required cash and expertise, and helps them reduce the risk involved in scaling up. These companies need to increase their speed, performance and valuations in order to raise money when they need and avoid getting diluted too early.

Another reason to tokenize sweat equity is to create liquidity and trust. You may ask why liquidity and trust, and why do they go hand in hand? Liquidity is what makes the wheel turn. It is the exchange, trade and barter, and it has to be trusted, just like how trust works in any other relationship. That is the reason why blockchain is the best technology out there to create trust and liquidity. 

Of course, entrepreneurs may have networks and ideas of their own, but they may not have the best mentors and advisors. What they can do is create a mechanism to reward those people by paying sweat equity.

The World of Cryptocurrency

There are different schools of thought in the crypto, cryptocurrency and blockchain world. It’s a vast world that can create liquidity in more than one way. There are people who are interested in Ethereum, Bitcoin and other Crypto assets and old assets. Of course, those people love liquidity, which comes with risk. Entrepreneurs don’t want to create too much liquidity or volatility because that is an indicator of risk, and entrepreneurs are already taking enough risks.

“When we were exploring the different concepts for Consilience Ventures, we started to think about one token per startup and we didn’t really like that idea. There are various reasons – some entrepreneurial and others more technical,” says Monserrat.

The stock market today works with the legal burden and pain of compliance and reporting, and early stage startups don’t want this enforced on themselves. It’s too heavy and would require the data of every single startup. If there are too many people selling tokens of one startup, it would send out the wrong signals and make it impossible to get the money the startup is looking for. 

“What if we create one token for all startups? What if we tokenize sweat equity worldwide and create the currency for entrepreneurs. That’s what we at Consilience Ventures have thought about – to tokenize the entire portfolio and build an evergreen portfolio which is founder centric, fast and agile. It should be 100% focused on the customer needs which are the startups in this case”, says Monserrat.  

If there is resource exchange in the middle, then there is 100 percent alignment between startups, experts, and investors. The whole point is to connect the world. Your network is your net worth. If the company can manage to build a global network of people who love and like the product, and also have skin in the game, that network will help the company to soft land.

What’s happening under tokenization is smart contracts. If startups are hitting milestones, they are going to automate and systemize their financing using that. They are going to move away from waterfall to sprint fundraising.

It is going to be a bit more challenging in terms of data and transparency, but it will work out in the benefit of the company in the end. It’s understandable if a company fails due to a lack of customers, but not because they are unable to raise money. If they hit milestones, they should be funded.

“This is the whole concept of tokenizing shares using smart contracts to help companies raise tokens against milestones and then stop going to demo days, incubators and accelerators who are only good at putting companies in front of inventors”, says Monserrat. “This is about helping companies be entrepreneur centric and making sure they help move this world.”

Limitations of Tokenizing Sweat Equity

In terms of governance, as long as companies touch blockchain and smart contracts, they have to be pretty clear about what governance they want to adopt. Most companies are testing, learning and scratching the surface of governance. Just like Decentralised Autonomous Organisation, there are others. However, a protocol like blockchain can be quite a democratic one.

In order to utilise blockchains and tokens, it’s important to learn how to use the new tools that are in place for security reasons. No one can retrieve someone’s private key or seed phrase. It is for this reason why investing in UX is going to accelerate the use of blockchain. 

The key benefits are for all. It is not just for experts who will make more money, startups who will raise with less pressure on their cash flows, or investors who will take less risks. It’s for the entire ecosystem. It’s about innovation and creating more successful entrepreneurs and bigger companies, especially if they share their profits and risks through sweat equity. 


In this space and time, early-stage investments are booming and value creation through IPOs is increasing the digital avenues. If you are looking to equip yourself with the right tools and insights to navigate this landscape globally, don’t forget to check out the Strategy Tools Scale Up! Coach Program. Here you will get the chance to meet real life investors, interview experts, talk to VC funds, analyse a lot of real life cases and access powerful tools developed by Rick Rasmussen and Christian Rangen. Sign up here and use code “SUCO25” at checkout for a 25% discount.  

If you are a start-up and require both funding and support at critical stages, check out Consilience Ventures. Through its community, it accelerates value creation and aligns incentives, leading to attractive rewards shared equitably among all the stakeholders.

Strategy Tools

Strategy Tools


Join the conversation


  1. DarylWodia

    how much is amoxicillin: amoxicillin 500mg capsules antibiotic

  2. ClaudeNossy

    where to buy amoxicillin 500mg without prescription amoxicillin script – where can i get amoxicillin 500 mg

  3. CharlesNak

    Some are medicines that help people when doctors prescribe.
    canadian world pharmacy canadian pharmacy world reviews
    drug information and news for professionals and consumers.

  4. Larryses

    how to buy generic mobic without a prescription where to buy mobic for sale where buy cheap mobic price

  5. Jamesbop

    ed treatment pills buying ed pills online best non prescription ed pills

  6. Larryses

    amoxicillin 875 mg tablet: amoxicillin for sale online how to get amoxicillin over the counter

  7. CharlesNak

    Read information now.
    where to buy cheap mobic pills: cheap mobic tablets – can i buy mobic without a prescription
    Actual trends of drug.

  8. Freddybiorn

    canadian family pharmacy: canadian drug prices – cheap canadian pharmacy online

  9. Albertchank

    canadian online drugstore: canadian drug pharmacy – canadapharmacyonline legit

  10. Freddybiorn

    online pharmacy india: top 10 pharmacies in india – buy prescription drugs from india

  11. Freddybiorn

    purple pharmacy mexico price list: mexico drug stores pharmacies – pharmacies in mexico that ship to usa

  12. Albertchank

    buy medicines online in india: top online pharmacy india – india pharmacy mail order

  13. Freddybiorn

    Online medicine order: india pharmacy – best online pharmacy india

  14. MichaelLam

    brand name neurontin buy neurontin online where can i buy neurontin online

  15. MichaelLam

    buying neurontin without a prescription drug neurontin 200 mg neurontin 150 mg

  16. Robertsharl

    buy antibiotics from canada: buy antibiotics from india – Over the counter antibiotics for infection

  17. MichaelQuach where buy generic avodart without insurance

  18. Georgedop

    canadian drugs online: canadian pharmacy – canada pharmacy

  19. ekings

    ekings hello my website is ekings

  20. daun123

    daun123 hello my website is daun123

  21. mpo999

    mpo999 hello my website is mpo999

  22. indowin

    indowin hello my website is indowin

  23. jika x1

    jika x1 hello my website is jika x1

  24. gate 4d

    gate 4d hello my website is gate 4d

  25. Francisplato

    canada drugs reviews: canadian pharmacy – vipps approved canadian online pharmacy

  26. DennisPat

    indian pharmacies safe: canadian pharmacy india – best india pharmacy

  27. RickeyBraig

    Pharmacies en ligne certifiГ©es – п»їpharmacie en ligne

  28. RickeyBraig

    acheter sildenafil 100mg sans ordonnance

  29. RickeyBraig

    Viagra homme prix en pharmacie

  30. Rogercox

    They take the hassle out of international prescription transfers. cheapest online pharmacy india: world pharmacy india – indianpharmacy com

  31. Rogercox

    Commonly Used Drugs Charts. canadian pharmacy: canadian discount pharmacy – canada pharmacy online legit

  32. Rogercox

    The staff is well-trained and always courteous. reputable indian online pharmacy: pharmacy website india – canadian pharmacy india

  33. Rogercox

    A touchstone of international pharmacy standards. mexican rx online: mexican drugstore online – п»їbest mexican online pharmacies

  34. Felixwag

    online canadian drugstore: canadian online pharmacy – best canadian pharmacy online

  35. Rogercox

    Top 100 Searched Drugs. is canadian pharmacy legit: canada pharmacy online legit – global pharmacy canada

  36. Michaelwrevy

    canadian pharmacies that deliver to the us: canadian pharmacy oxycodone – thecanadianpharmacy

  37. Felixwag

    buy prescription drugs from canada cheap: legit canadian pharmacy – canadian pharmacy oxycodone

  38. Rogercox

    Making global healthcare accessible and affordable. indian pharmacy: indian pharmacy – indian pharmacies safe

  39. Felixwag

    best online pharmacies in mexico: mexican drugstore online – medication from mexico pharmacy

  40. Felixwag

    where can i buy zithromax medicine buy Z-Pak online buy generic zithromax online

  41. Bobbytaw

    A pharmacy that breaks down international barriers. erectile dysfunction drug

  42. Gregoryaledy

    A trusted name in international pharmacy circles. ed pills that work: Instant erection pills – treatment of ed

  43. Bobbytaw

    Love their range of over-the-counter products. ed medication online

  44. Clintloake

    A pharmacy that genuinely cares about community well-being. canadian pharmacy india

  45. Clintloake

    A pharmacy that truly values its patrons. online pharmacy india

  46. Dennisovemi

    They have a great selection of wellness products. mexican mail order pharmacies

  47. CharlesSumuh

    canadian neighbor pharmacy canadian pharmacy meds list of online pharmacies

  48. Clintloake

    Consistency, quality, and care on an international level. top online pharmacy

  49. Clintloake

    Their senior citizen discounts are much appreciated. cheapest online pharmacy india

  50. Dennisovemi

    Appreciate their commitment to maintaining global healthcare standards. best india pharmacy

  51. Stevendaync

    neurontin 600 mg cost: neurontin cap 300mg – generic neurontin 600 mg

  52. Jamesbit

    purple pharmacy mexico price list and mexico online pharmacy – mexican pharmaceuticals online

  53. Jamesbit

    mexican mail order pharmacies – mail order pharmacy mexico – mexican online pharmacies prescription drugs

  54. CharlesFal

    mexico drug stores pharmacies : mexican pharmacy online – buying prescription drugs in mexico

  55. Jamesbit

    mexican border pharmacies shipping to usa or mail order pharmacy mexico – pharmacies in mexico that ship to usa

  56. RalphNit

    buy medicines online in india: best india pharmacy – pharmacy website india

  57. RalphNit

    certified canadian pharmacy: canada pharmacy – my canadian pharmacy

  58. RalphNit

    stromectol tab 3mg: ivermectin buy uk – buy minocycline online

  59. RalphNit

    safe canadian pharmacy: best pharmacy online – safe canadian pharmacy

  60. Terrygloth

    can you buy valtrex online: valtrex antiviral drug – valtrex 500 cost

  61. ErnieOdova

    paxlovid pharmacy: paxlovid generic – п»їpaxlovid

  62. IQ Option Sinhala

    If you make the incorrect prediction, you lose all the cash that you just invested.

  63. downloader extension

    The downside is – it only provides you the choice to obtain mp3 in 128kbps (meh).

  64. Briansnafe

    mexican border pharmacies shipping to usa: mexico pharmacies prescription drugs – mexico drug stores pharmacies

  65. DavidSoaws

    mexico drug stores pharmacies: best online pharmacies in mexico – mexico drug stores pharmacies

  66. Briansnafe

    my canadian pharmacy review: canadian pharmacy 24 – canadian pharmacy reviews

  67. Briansnafe

    canadian pharmacy 365: canadian online pharmacy – canada rx pharmacy world

  68. DavidSoaws

    canada rx pharmacy world: escrow pharmacy canada – canadian mail order pharmacy

  69. Briansnafe

    mexican online pharmacies prescription drugs: medicine in mexico pharmacies – mexican online pharmacies prescription drugs

  70. Briansnafe

    canadianpharmacymeds com: canada rx pharmacy world – vipps canadian pharmacy

  71. Briansnafe

    canadianpharmacy com: cheap canadian pharmacy – canadian pharmacy cheap

  72. DavidSoaws

    best canadian online pharmacy: canadian pharmacy online – canadian drug pharmacy

  73. DavidSoaws

    indian pharmacy paypal: buy medicines online in india – online shopping pharmacy india

  74. Briansnafe

    canadian discount pharmacy: canada pharmacy – reliable canadian pharmacy

  75. DavidSoaws

    canadian pharmacy 365: canadian pharmacy no scripts – 77 canadian pharmacy

  76. Briansnafe

    best online pharmacies in mexico: п»їbest mexican online pharmacies – mexican online pharmacies prescription drugs

  77. RobertGoons

    where to buy cheap clomid tablets: how to get generic clomid pill – can you get clomid without insurance

  78. JamesNeams where can i buy amoxicillin over the counter

  79. Timothycig

    cost of generic propecia pills: cost of propecia for sale – generic propecia prices

  80. RobertGoons

    how to buy amoxicillin online: amoxicillin where to get – amoxicillin 500

  81. RobertGoons

    get cheap propecia without a prescription: order propecia no prescription – get generic propecia tablets

  82. RobertGoons

    doxycycline monohydrate: doxycycline 50mg – doxycycline tetracycline

  83. RobertGoons

    cost cheap propecia price: buying propecia – order generic propecia for sale

  84. WillieCah

    cheap propecia prices: generic propecia – cost generic propecia without rx

  85. RichardvoB

    tadalafil for sale from india tadalafil 22 mg tadalafil 2.5 mg generic

  86. Josephdew

    Cheap Levitra online: Levitra 20 mg for sale – Buy Vardenafil 20mg

  87. RichardvoB

    Kamagra tablets Kamagra 100mg Kamagra 100mg

  88. Josephdew

    ed pills gnc: ed drugs – best ed treatment pills

  89. Charlesjon

    purchase lisinopril 40 mg buy lisinopril lisinopril prices

  90. ScottwaynC

    cost of doxycycline in canada: doxycycline buy online – purchase doxycycline

  91. Charlesjon

    zithromax 600 mg tablets zithromax antibiotic where can you buy zithromax

  92. ScottwaynC

    doxycycline 75 mg coupon: Buy doxycycline 100mg – doxycycline pharmacy singapore

  93. ScottwaynC

    amoxicillin online canada: generic amoxil 500 mg – amoxicillin buy no prescription

  94. Richardpurse

    canada pharmacy online canada pharmacies: legal drugs buy online – best canadian pharmacies online

  95. RobertKib

    medication from mexico pharmacy: mexican medicine – buying prescription drugs in mexico

  96. RobertKib

    top rated online pharmacies: buy medicine online – cheap drugs online

  97. Richardpurse

    canada drugs online pharmacy: online pharmacy usa – rx online

  98. RobertKib

    international pharmacies that ship to the usa: buy drugs online safely – buy medicine canada

  99. Richardpurse

    pharmacies in mexico that ship to usa: best online pharmacy – buying prescription drugs in mexico

  100. MichaelpHirm

    ventolin tablets: buy Ventolin inhaler – online ventolin

  101. MichaelpHirm

    neurontin generic cost: buy gabapentin – neurontin 600 mg capsule

  102. MichaelpHirm

    can i get clomid pills: Buy Clomid Online – where to buy clomid tablets

  103. Mathewthots

    paxlovid cost without insurance paxlovid price

  104. MichaelpHirm

    neurontin 400 mg tablets: generic gabapentin – neurontin brand name 800mg

  105. MichaelpHirm

    neurontin 100mg capsule price: cheap gabapentin – neurontin canada online

  106. MichaelpHirm

    can i purchase clomid price: clomid best price – get clomid

Submit a Comment

Your email address will not be published. Required fields are marked *