Why store of value matters to a first-time founder
Founders need somewhere to hold reserves between receiving and spending cash. A suitable store of value should preserve purchasing power over the required period without creating unacceptable volatility, custody or access risk. The best choice for long-term wealth may be unsuitable for payroll due next month.
Examples of store of value
A company expects to spend €100,000 on payroll within eight weeks. It keeps the money in an accessible, appropriately protected bank account rather than a volatile asset that might fall 20% before payday. For funds not needed for several years, it separately considers return, inflation and risk.
Common misunderstanding
A store of value does not have to rise in price, and no asset preserves value perfectly in every period. Inflation can erode cash, while property, commodities and digital assets can be volatile or difficult to sell. Being widely promoted as scarce does not make an asset safe, liquid or suitable for company reserves.
When to use it
Use the concept when deciding where to hold money across a stated time horizon. Match each reserve to its purpose, currency, access needs and risk tolerance. Before using investments or digital assets, check governance, custody, tax, regulation and accounting, and never expose near-term operating cash to avoidable speculation.