As tech startups rushed into the market and people started buying tech things so as a result techies’ income rapidly boosted.
Aaron Rubin, a partner at Werba Rubin Papier Wealth Management, said his clients were in shock over their newfound wealth.
When the pandemic hit every sector including tech, tech workers started worrying that their startup stock might never pay off. But things went opposite to all of these.
The whiplash, plus general unease about the economy, has now discouraged them from making the kinds of splurges that often accompany overnight fortunes, Rubin said. Compared with past booms, there is “more gratitude,” he said, and more plans for the charity.
Everyone is waiting for the other shoe to drop,” Rubin said. “Maybe they buy a new Tesla or convertible, but they don’t go out and start buying airplanes overnight”.
Silicon Valley’s cash-gushing, millionaire-minting initial public offerings have been bigger and buzzier than ever. But in the pandemic, the newly rich aren’t celebrating with the usual blowout parties and early retirement into round-the-world travel.
Riley Newman said “People’s mindset is not in a place to be ostentatious, ”
Riley Newman was an early employee at Airbnb, which went public in December and immediately topped $100 billion in value.
People have shifted their focus from vacation homes and flashy cars to suburban homes and schooling said Newman, who now runs Wave Capital, a venture capital firm.
Over the past six months, at least 35 companies that were founded in the San Francisco Bay Area — including Airbnb, DoorDash, and the data warehousing company Snowflake — have gone public for a combined market value of $446 billion, according to a tally by The New York Times.
Those companies’ “lockup periods,” which prevent insiders from selling most of their stock soon after an IPO, will expire in the coming months, unleashing a wave of wealth.
The new wealth is part of a widening gap between the tech industry and the rest of the economy. Dozens of retail chains have gone belly-up, cafes have shuttered, and unemployment has rapidly increased.
But in tech, the shift to working, shopping, and socializing via screens has boosted the adoption and selling of digital products and increased growth.