We are living in a world that changes by the minute if not second and that has spurred a new wave of tech entrepreneurs with great ideas leading to unimagined success, though once you jump on that crazy raft and navigate the treacherous waters not only to survive but to come out big in the end, what do you do with the fruits of your labor?
Looking at the wealth management space over time along with investors we’ve guided in the past, it’s interesting how there’s a seismic shift happening behind the scenes where families can build generational wealth then eventually focus on a family office with a $500M portfolio while on the flip side a kid fresh out of college can spend a few years building a tech startup then sell it for the same amount.
Whether you have generational wealth going back hundreds of years or recently stumbled upon something great based on your work, the same investment principles apply: Creating a strategy that focuses on your goals and growth in the future, and that’s where you need to take a step back to think not only about investment returns but also what makes you happy each day.
Going back to the core of this blog post, especially as it relates to wealth management consulting for tech entrepreneurs, we see 3 key things happening in 2025:
First and foremost, a disproportionate amount of bad investments are made by tech entrepreneurs after they exit because they’re flush with cash and feel like they need to readily deploy it to produce returns, however you have to strike when the iron is hot not when you emotionally feel an investment should be made. Essentially, just because you have money doesn’t mean you have to deploy it now. The unavailability of sound investments is no excuse for buying poor ones.
Secondly, unlike old school family offices which are diversified across what worked in the past, if you sell your company tomorrow and have a clean slate along with money why not sit down and map out your entire future? Looking at X goals plus Y funds should = Z (happiness/success in the end). For example, based on your experience it might be better to invest in tech-related adventures/stocks versus farms in Idaho that you know nothing about.
Lastly, as the tech world evolves so is the financial consulting space, and with all of the interest we’re getting for wealth management consulting from startup founders that are now exiting along with many other projects, we are looking forward to what 2025 has in store.
Close to selling your company and need guidance on what to do next? Let’s brainstorm.