For startups or growing new businesses, one of the founders’ highest dreams is to exit successfully. Many entrepreneurs choose to sell their businesses to reap substantial profits. However, for many founders, the massive wealth that elevates them to millionaire or billionaire status is not the true goal they seek.
An article published on Bloomberg by Tiffany Ap notes that Sudden Wealth Syndrome is affecting many technology founders. This problem has intensified amid the AI boom, which is creating new millionaires almost daily.
Many imagine that receiving a large sum from selling a company brings the comfort and happiness they desire. Yet for those who have worked hard—often starting from hardship and ambition—the aftermath of exiting can be emptiness and a lack of life purpose.
One person facing internal conflict after selling a business for hundreds of millions of US dollars is Anastasia Koroleva. According to her LinkedIn, after selling her startup—earning four times her investment 15 years ago—she experienced emotional and psychological struggles.
She explained that these difficulties led to her divorcing her husband and impacting many aspects of daily life. Three years ago, she started her own podcast called Exit Paradox, interviewing many wealthy individuals. She discovered that many wealthy startup founders face similar emotional challenges.
The pinnacle of what seemed like a long-sought success turned into psychological wounds. Some describe "recovering from selling a $500 million company" or "struggling for over a decade" to escape a purposeless life.
This condition is called by psychotherapists “Sudden Wealth Syndrome.” Annie Wright, a psychotherapist, states that the causes of these symptoms have intensified in the AI era, comprising three main factors:
This rapid wealth differs completely from lottery winnings because business-generated riches become tied to their identity forever. Even if they feel successful, the aftermath can be dissatisfaction accumulating as pain.
Psychotherapists say many fall victim to “Arrival Fallacy.” This is the mistaken belief that reaching a set financial goal will bring lasting happiness. When it doesn’t, many founders immediately start new ventures—not out of inspiration but to prove their initial success was not a fluke.
Sherry Walling, a psychologist familiar with startup entrepreneurs, notes that those who handle large sums best often hold two beliefs: "I worked very hard, and I was very lucky." This rewards themselves without excessive ego.
Those who suffer most are often people for whom "the company was everything in life"—no relationships, hobbies, or meaning beyond selling the business. "That’s where you tie your self-worth and well-being solely to one event," so no amount of money "can sustain that for you."
New millionaires are emerging alongside the AI wave, with wealth cycles accelerating exponentially. Even company employees become new wealthy individuals, able to leave with large sums instantly.
One deal to watch is Anthropic’s upcoming IPO, expected to create seven new billionaires—all founders—and more than 50 new multimillionaires, plus over 1,200 millionaires, all original shareholders.
Previously, many new millionaires were created when SpaceX went public in June. This excludes the numerous billionaires and millionaires expected from OpenAI’s IPO next year. Together, these two companies will likely produce dozens more new wealthy individuals.
After sudden wealth, some spend lavishly without restraint, no longer needing to work. In some societies, communities are formed to help these wealthy people network, manage wealth, find investment opportunities, and reshape their new lives.
Because sudden massive wealth changes many life dynamics, Sam Parr, an entrepreneur and founder of Hampton—a network for high-net-worth businesspeople—says that reaching the top young often creates shocks for families.
Thoughts and communication with parents, partners, and friends require greater care. Family members begin to consider what they deserve, and newcomers become harder to welcome. Sometimes wealth comes at a higher price than expected, needing to distinguish between those seeking genuine closeness and those seeking access, resulting in increased caution.
According to Anastasia Koroleva’s research, about 10 years after exiting a business, 15% of entrepreneurs remain in a state of sadness, 70% feel generally fine but sometimes empty, and only 15% feel that wealth truly fulfills their lives.
She aims to increase the last group and therefore organizes Post Wealth System camps designed to guide financially free individuals toward more fulfilling lives.
An example of someone who escaped this cycle is Michael Sonnenfeldt, founder of Tiger 21, a network for ultra-wealthy individuals who has observed many peers struggle with sudden wealth for over 30 years.
“Whether rich or poor, just having money is good enough,” Michael Sonnenfeldt quotes his wife’s grandmother. He notes that many wealthy people adjust poorly, as do many who are not wealthy, but the wealthy’s mistakes are more visible when they err.
He cautions against expecting money to solve all problems, since no one knows what comes next. He compares life to an infinite game where the goal isn’t to win but to keep going. He says high achievers trained to focus on results rather than process find this adaptation difficult.
Currently, the problem of "getting rich too fast" affects only a very small group. However, in the AI era, no one knows how many new millionaires will emerge tomorrow. In the future, this group will become a pilot study cohort with funding, exploring what humans do when they no longer need to work.
Source:Bloomberg
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