Entrepreneurs who have a liquidity event are often like lottery winners. They are not well equipped to know how to manage the money especially if they are not from a wealthy family and have always lived a more normal/middle class lifestyle. They can end up being too conservative or take too much risks and the worst part is that they may not even be aware of it. Entrepreneurs also have an added problem of usually having a big ego, always optimistic and wanting to make all the decisions ourselves which is a good recipe for investment failure.
I am writing this article so share some learning experiences which i had over the years. Both from reading, own experience and from others. Please feel free to comment and add experiences.
1) Don’t touch bulk of the money for the next 6-12 months
Say you suddenly now have X million ...
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