A new VC firm doesn't give startups any funding because capital is 'commoditized.' Here's why Sweat Equity's founder says his work-for-equity model is a better deal for startups.

Sweat Equity VenturesSweat Equity Ventures founder Dan PortilloDan Portillo founded Sweat Equity Ventures, a VC firm that works with founders in exchange for company equity instead of writing funding checks, with $30 million in backing from LinkedIn founder Reid Hoffman.Portillo previously worked at Greylock with Hoffman and had helped scale internet giant Mozilla prior to getting into venture.Instead of the traditional VC operating structure, the entire $30 million is dedicated to hiring top engineers and other business experts who can then embed with Sweat Equity portfolio companies and build the company alongside the founders.This kind of structure works because of how competitive venture funding has gotten, Portillo told Business Insider. Sweat Equity is able to work alongside traditional

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