De-risking concentration

Nearly all your net worth sits in one illiquid company. This is how founders think about that risk and start spreading it, without betting against themselves.

What founders use for de-risking concentration, ranked by how many answers lean on it.

  1. A no-nonsense, ad-light India personal-finance site: plain math and free calculators for emergency funds, goals, and asset... Freefincal Tool Freefincal: goal-based planning and calculators M. Pattabiraman In 5 answers
  2. The free, India-first grounding in what to do with cash once you have it: goals, allocation, SIPs, and not losing it to fees. Zerodha Varsity Course Personal Finance Zerodha Varsity In 5 answers

The questions

Understanding your concentration 7

Why nearly all your net worth sitting in one company is the real risk to your family.

My company is doing great. Why should I worry about concentration? 2 → How much of my net worth in my startup should feel like too much? 2 → What actually happens to my family if my startup fails and it is most of our net worth? 2 → Are my salary, my house, and my ESOPs all riding on the same company? 2 → My net worth is almost all startup equity on paper. Is that real wealth or not? 2 → All 7 questions in Understanding your concentration →
Diversifying beyond your company 7

Turning the little liquidity you have into a portfolio that survives a bad outcome.

How do I start diversifying when most of my wealth is illiquid? 3 → Should I sell some shares in a secondary just to build a safety net for my family? 3 → Where should the first money I take off the table actually go? 3 → How big should a founder's emergency fund be, and where should I park it? 3 → Should my diversified money try to beat the market, or just track it? 3 → All 7 questions in Diversifying beyond your company →
eChai Partner Brands The partnership →