Paper wealth

Also called: paper gains, on-paper value

In one line

The theoretical value of your equity based on the latest valuation — real only once you can actually sell.

In plain English

Your shares might be 'worth' a lot on paper after a big round, but that value is unrealised and illiquid. Paper wealth can evaporate in a down round or a disappointing exit.

If you were explaining it to a 5-year-old

Your toy has a shiny high price tag, but until someone hands you coins for it, it's just a number on a label.

Why it matters when you sell

The gap between paper wealth and realisable cash is the whole reason secondaries exist — turning some paper into real money reduces your risk.

Put it to use

Value my equity · Concentration risk

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Paper wealth

Related terms

Put it to use