Founder Problem
The Founder Paradox
The more successful the company becomes, the more concentrated a founder's personal wealth can become.
01
Concentration Risk
A large percentage of personal net worth may depend on one private company.
02
Layered Risk
Company risk, market risk, financing risk and personal financial risk can compound.
03
Liquidity Timing
Paper wealth and usable liquidity are not the same thing.
04
Tax Exposure
A liquidity event can create significant tax consequences at precisely the moment wealth becomes liquid.
05
Personal Balance-Sheet Dependency
Personal financial decisions can become dependent on a company's financing, valuation and exit timeline.
The objective isn’t to predict the exit.
It’s to build a personal financial architecture that does not require the exit to happen on schedule.