Is working for tech equity too high risk?
Do you feel like it’s a gamble or that the potential rewards are handed out by random chance?
If so, it’s time to shift your paradigm about working for tech equity.
Working For Tech Equity: An Investment with a Risk/Reward Profile
You have to start thinking about it just like you would for any other investment. There is a risk/reward profile for the companies that you choose to work for and their return on investment spectrum.
There are investments even in tech equity that are low risk/low reward all the way up to high risk/high reward.
Working For Tech Equity: Low Risk/Low Reward
For example, in the tech industry, a low risk/low reward investment might look like working for tech equity at Google or Amazon—a company that’s already gone through an equity-generating event and is continuing to grow even during these challenging times.
You may not be able to command as much equity for your role, but you know that getting equity that is liquid is certain and it’s going to create additional wealth for you as a part owner in the company.
Working For Tech Equity: High Risk/High Reward
On the opposite end of the spectrum, there’s a high risk/ high reward profile for working for an early stage start up with potential for a great return on time invested, but it’s often hard to work through the uncertainty of waiting for a capital event.
The overarching question is for tech equity or any investment is: what is your risk tolerance?
In order to answer that question, in today’s video, I’m going to help you understand the risk/reward profile for trading your time and talent for tech equity.
- How to discern the risk and reward profile for tech companies
- My personal preference for investing in tech equity based on the growth stage of the company
- A helpful framework for looking at tech equity as an investment for optimal results
If you’re ready to start building wealth in a much bigger by trading your time and talent for tech equity, this video is for you!