A day in the life of a super rich tech founder: Buying good class bungalows (GCB) will be like going to the gas station to fill up your tank …
If you haven’t read the news yet, at least three tech founders have been reported to have bought or purchased GCB in the past two weeks.
The first technology founder is Ian Ang, 28, CEO of gaming chair maker Secretlab. It was reported that he seized not one, but two luxury properties for a whopping S $ 51 million. No, you didn’t misheard, the young Singapore boss has sealed the deal to join the ultra-high net worth club.
Tech founders have been buying up luxury properties, revealing their UHNWI statuses / Image Credit: Vulcan Post
People with ultra-high net worth, according to Knight Frank research firm, are those who have a net worth of at least US $ 30 million in liquid assets, including their primary residence.
Two other technology founders or their family, Grab CEO Anthony Tan and Razer CEO Tan Min-liang, are said to have bought or are considering buying GCBs worth between S $ 40-53 million. .
GCBs are the cream of the crop for properties in Singapore’s real estate market. To qualify as a GCB, the onshore home must have a minimum parcel size of 15,070 square feet. Also, only a Singaporean citizen can own a GCB.
Welcome to the ultra high net worth club
Globally, among the top 10 countries with the fastest growing populations of ultra-high net worth individuals (UHNWI), Singapore ranks third, behind China and Sweden.
In fact, according to data firm Statista, the number of UHNWIs in Singapore is projected to rise by 30% from 2020 and will reach 4,888 people in 2025.
These founders have earned a living to be where they are. But it should be noted how the pandemic has caused an increase in consumer demand for technology.
Image Credit: Vulcan Post
Research firm Randstad said the rapid adoption and advancement Technology trends have accelerated the growth of the information technology industry, particularly in segments such as payments, deep technology, gaming, and e-commerce.
This proves to be true, as bosses have been reporting positive numbers for their tech companies in recent months.
Singapore ranks third among the richest in the world, after China and Sweden / Image Credit: AP
We take a look at how these founders have increased their wealth, based on publicly available information, and dig deep to find out if they are overspending as well.
Ian Ang – CEO of Secretlab
An online search showed that Ian’s net worth was tied to his company, which was worth S $ 300 million six months ago. The company’s operating profit increased nearly fourfold to an estimated $ 52 million in the financial year ending February 2021.
The EdgeProp in June said that Ian is “well seated” at a company with a S $ 2 billion valuation.
Public records show Ian owns a 70% stake at Secretlab, while its co-founder Alaric Choo owns 25 percent.
Ian Ang is doing “ pretty good ” with a net worth of S $ 1.4 billion / Image Credit: The Peak Magazine
In August 2019, Temasek’s subsidiary, Heliconia Capital Management, acquired a minority stake in the company, which was then valued between S $ 200 and S $ 300 million.
If the records and reports are accurate, this puts Ian “sitting gloriously” on a S $ 1.4 billion stake in Secretlab.
This means that the co-founder is spending 3.64 percent of his shares for his properties of S $ 51 million.
Tan Min-liang, CEO of Razer
Last August, Forbes listed Min-liang with a net worth of $ 650 million.
For the financial year ending 2020, Razer hit profitability for the first time since 2014, accumulating US $ 1.2 billion in sales. That’s a 48 percent increase from the previous year.
He also made a small profit. Min-liang had said further growth is expected in 2021 as more people get into the habit of gambling amid the pandemic.
Razer has a Market cap of HK $ 17.82 billion on the stock market, which translates to S $ 3.10 billion. CEO reportedly wins US $ 10 million every year.
Not to be outdone, Tan Min-liang currently owns around S $ 1.06 billion in combined stock and cash / Image Credit: Razer
Judging by Razer’s 2017 IPO to date, that adds up to about $ 45 million in earnings as the company’s CEO.
According to a article in 2017, Min-liang owns about 33 percent of Razer. If that doesn’t change, this means the CEO has a S $ 1 billion stake in the company.
Adding up the increase in sales over the past year and Min-liang’s stake in the company, barring unreported data, the Razer CEO owns about S $ 1.06 billion in combined stock and cash.
Spending S $ 52.8 million for a GCB from that stash, means you will be spending 4.98 percent of your net worth.
Anthony Tan – CEO of Grab
Although the news reported that Anthony’s wife had bought the house. For comparison purposes, we will discuss Anthony’s net worth and stake in Grab.
Grab is expected to go public in the fourth quarter of 2021. The deal will be valued at $ 40 billion, up from a valuation of $ 16 billion earlier this year.
With the deal, Anthony, who will own a 2.2% stake in Grab, could see his fortune increase. to US $ 829 million (S $ 1.12 billion). If the shares trade above the transaction price, Anthony will be on his way to becoming a billionaire.
As of 2019, Anthony was listed in Forbes with a net worth of $ 380 million.
Anthony Tan has a net worth of S $ 880 million, according to an investigation of publicly available data / Image Credit: Fortune.com
Grab’s income hit US $ 12.5 billion in 2020, more than double the 2018 figures. It jumped 70 percent from the previous year.
Added to Anthony’s net worth in 2019 to coincide with 2020, this brings his net worth to increase to US $ 646 million or S $ 873.50 million in 2020.
If we calculate the GCB of S $ 40 million purchased based on his current net worth, it is predicted that Anthony will spend 4.58 percent of the total sum.
So are they overspending?
Now that we’ve broken down the figures we have on hand, it seems to show that the founders aren’t spending more than 5% of their net worth on property.
With Ian sitting on the most money due to his reported 70 percent stake in Secretlab, it seems like he’s spending the least.
As for Anthony and Min-liang, it would probably be a tie on who spent the most as they are both shoulder to shoulder with growing their own businesses and it looks like Anthony’s SPAC will launch later in the year and it is not. complete yet.
Founders spend no more than 5 percent of their net worth / Image Credit: Vulcan Post
Perhaps their seemingly “generous expenses” don’t seem so much after all, if we were to compare them to the average person who takes on massive debt to finance million dollar real estate dreams.
Real estate advisers have suggested that the standard rule of thumb has 20 to 30 percent of the net worth destined to housing. This allows the person to capitalize on the advantages of real estate while looking for other avenues of investment.
I guess this means that tech founders are expected to be looking for more GCBs in the future.
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Featured Image Credit: Secretlab, Grab, Razer, Google Maps, EdgeProp