In this video, entrepreneur and former angel investor Mike Brown warns that many founders fail to keep sufficient liquid assets—cash, stocks, crypto—that can be accessed within 24 hours. He explains that after achieving early profitability, entrepreneurs often pour cash into illiquid startup investments, leaving them cash‑poor despite having paper wealth. Brown shares a personal story of acquiring a distressed e‑commerce business, watching his bank balance drop to zero while his equity was locked in long‑term, illiquid stakes. He argues that any cash withdrawn from a primary business should be used to hedge risk, recommending allocation to highly liquid or low‑risk assets such as cash, index funds, real estate, or stable equities, rather than further funding other companies. The overall message is a cautionary call to maintain liquidity to survive emergencies and avoid being trapped by illiquid investments.
