Taking money off the table
6 months ago
- #financial-planning
- #investment
- #startup
- The dilemma of whether to sell equity in a startup during a tender offer or hold onto it for potential future gains.
- Advice leans towards taking the money, emphasizing the unpredictability of startup success and the benefits of having liquid assets.
- Startups can fail despite early success, highlighting the risk of holding onto equity too long.
- Personal anecdote about taking a tender offer at GitHub, which alleviated stress and provided financial security.
- The importance of diversifying investments and the psychological benefits of securing some financial gains early.
- Acknowledgment that not all financial decisions need to be optimized for maximum gain; sometimes, securing stability is more valuable.
- The situation is not just a 'rich person problem'—many face real financial pressures despite holding valuable equity.