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psychacks
psychacks·September 1, 2023

The Equity of Risk: Applying Startup Investment Principles to Long-Term Relationships

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Summary

The episode draws a direct analogy between the world of startup investment and long-term romantic relationships, particularly for women seeking high-value partners. It posits that just as founders of an untried company take substantial risks for the promise of equity and potential multi-millionaire status, individuals who invest early in a partner's potential, when they have little to offer but a vision, are the ones who stand to gain the most significant rewards. Conversely, those who wait for a company (or a man) to become successfully established will only receive a salary, not equity, implying a cap on their potential returns and requiring continuous effort.

Dr. Taraban illustrates this concept with his personal experience, recounting his struggles in his early 20s when he was broke and had "nothing to offer but myself." Despite having a clear vision and self-belief, he couldn't attract a partner willing to "invest" in his potential. He attributes this to the inherent risk aversion, particularly among women, who saw betting on an unproven "startup" as too risky. This forced him to "roll up my sleeves and do it myself," learning various skills (marketing, accounting, etc.) to build his "company" (life/career) independently.

The core distinction made is between "equity" and "salary." Equity represents a share in future success, earned through early risk, effort, and deferred gratification. Salary, on the other hand, is compensation for work performed after success is established, offering stability but limiting upside. The podcast argues that women who wait for men to become "successful and high-value" will only ever receive a "salary" in a relationship, not the "equity at parity" that comes from shared struggle and co-creation from the ground up.

The practical insight for women is to adopt a "savvy investor" mindset, encouraging them to develop discernment to identify "dark horses"—ambitious, talented men with high potential before they achieve widespread success. This "buy low and sell high" strategy is presented as the path to achieving "equity" in a relationship, rather than settling for a "salary" by joining an already successful "company." The broader implication is a critique of risk-averse dating strategies that prioritize established success over potential, potentially limiting women's long-term relational and financial outcomes.

Key Quotes

Equity is how people after several years become multi-millionaires overnight.
If you the potential employee wait to seek a position at a company only after it's been successfully established you're not going to get equity you're going to get a salary at best.
I had nothing to offer but myself which I learned doesn't get you very much in the sexual Marketplace.
I believed in myself and I had absolute confidence in my ability to achieve my vision and I would pitch that to the women that I dated this is what we could build together I could really use your help.
Women who are generally more risk averse than men saw investing in me back then as too risky of a proposition.
There is absolutely no way I would ever enter into an arrangement in which someone I took on might be entitled to half of what I've built.
Ladies if you wait until the company goes public you don't get Equity you get a salary.
If women were really smart they would get better at exercising their discernment with respect to which ambitious talented men are likely to go the distance.
This is why I say that the best dating strategy for women is to find a dark horse.
If you want Equity especially Equity at parity you've got to take the risk roll up your sleeves and work just as hard as the man when he has nothing.

Concepts

Themes

  • Investment in Relationships
  • The Value of Early Risk-Taking
  • Gender Differences in Risk Aversion
  • Personal Responsibility and Self-Reliance
  • Strategic Dating and Partner Selection
  • The Evolution of Value and Success
  • Analogy as a Persuasive Tool

Related to:

Relationships Insights

Market Implications

  • Dating strategies are framed using market principles like 'buy low, sell high' and the concept of 'equity' vs. 'salary' in relationships.

Key Concepts

  • Equity
  • Salary
  • Risk
  • Reward
  • Vision
  • Discernment

Practical Applications

  • Advice for women on how to strategically approach dating to secure 'equity' in a long-term relationship by identifying high-potential partners early.

Risks Mentioned

  • Investing in an untried company/person with uncertain success
  • The majority of startups fail
  • The risk of not realizing one's dream

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