Silicon Valley is experiencing an unprecedented wave of wealth creation. As companies like SpaceX, OpenAI, and Anthropic approach liquidity events, their employees and early investors find themselves facing fortunes that defy traditional definitions. I spoke with two private wealth managers who work with high-profile tech clients, Ashley Velategui of Bernstein Private Wealth Management and Brittany Boals Moeller of Goldman Sachs, to understand how wealth management is evolving in this context.
A New Definition of Wealth
Velategui noted that the definition of high net worth has become more ambiguous. Once upon a time, being ultra-wealthy meant having between 25 and 30 million dollars. Today, her average client is worth between 20 and 100 million. This growth has led many to consider forming a family office much earlier than expected. Setting up such a structure requires at least 25 million, indicating that total wealth is far greater.
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Navigating Lock-up Periods
Despite the anticipation of an IPO, most employees cannot sell their shares until the lock-up period ends, typically lasting 180 days. Even with staged lock-ups, complexity increases, requiring careful management. Velategui advises caution: selling too early could mean missing out on future gains.
Tax Strategies and Financial Moves
Tax minimization is a top priority. Advisors propose sophisticated strategies like variable prepaid forwards, which allow receiving an upfront tax-deferred payment for shares, or borrowing against a brokerage account. These techniques, while risky, are popular in Silicon Valley's risk-tolerant environment.
The Role of Artificial Intelligence
Clients arrive at meetings with more targeted questions, often after consulting AI chatbots like Claude. Velategui emphasizes that advisors must provide added value: nuanced insights not publicly known. Goldman Sachs has expanded concierge services, offering private jets, healthcare specialists, security, and exclusive event tickets. For now, AI cannot replicate all that.
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Investing in What Makes You Happy
Silicon Valley is unique for its flywheel effect: those who get a windfall often reinvest in other startups or launch new ones. Boals Moeller works with clients who funnel a significant portion of their wealth into new ventures, and part of advising is understanding what money really means to them. Whether it's maximizing donations, buying a family home, or starting a new business, the portfolio is built around those goals. If you want to learn how to turn an idea into a successful product, read our guide on startups and product management.
Philanthropy and Pro-sociality
The new generation of tech wealthy shows a strong interest in philanthropy. Boals Moeller observes that many want to give back dramatically. Velategui notes that ultra-wealthy parents teach their children money management by giving them small funds to donate to causes like animal rights. A top AI executive believes this new philanthropic era will be more pro-social than the past. Of course, philanthropy also remains a vehicle for reducing tax burdens, but it could help regain public trust during economic uncertainty caused by AI. For an example of how internal dynamics at big tech companies can affect corporate culture, read the article on Meta in chaos. For more on the definition of high net worth, check Wikipedia.
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