Ask an Investor, Larry Li of Amino Capital, Ep.11: Why am I always being pushed around by others?

Larry analyzes the complexity of relationships throughout society and how your decisions and relationships can impact others and influence your value.

Have you ever played Jungle Chess? The rules are not complicated. Two opponents face each other with eight pieces representing different animals. In order of descreasing strength, these animals are: elephant, lion, tiger, leopard, wolf, dog, cat, and mouse. A piece can capture another piece of the same rank or a lower rank, and the last piece on the board determines the final winner.

 

But there’s one final rule, the most interesting one: the mouse, the weakest piece, can capture the elephant, creating a loop in the power dynamics of the pieces. This makes the game much more intricate and strategically challenging. Otherwise, once a player captures the strongest piece of their opponent, the elephant, there would be no point in continuing the game.

 

Therefore, the key aspect that makes Jungle Chess a captivating board game is the mouse's ability to counter the elephant. It achieves balance in the power rules, making players' strategies the decisive factor in winning the game.

 

This small game contains profound wisdom: everything, regardless of its strength or status, is always restrained by something else. Whether in a game or in nature, everything is interconnected and restrained, achieving a certain balance. This is what the old saying "there is always one thing to conquer another" means. An unbalanced state is temporary and unsustainable, lacking in vitality.

 

These interconnections, constraints, and mutual influences are referred to as relationships in human society. The network of connections between individuals forms the underlying structure of the world’s operation.

 

In this network, people, emotions, laws, logic, power, responsibilities, and interests interweave, allowing everyone to influence and be influenced by others.

 

In a company, ordinary employees are managed by middle managers, middle managers are supervised by upper management, and upper management is controlled by the board of directors. However, the appointment and removal of board members is ultimately determined by the evaluation and votes of investors, users, and employees.

 

The president, as one of the most powerful political figures in the human world, influences the daily lives of many people. But the system of separation of powers allows the president’s decisions to be reviewed or even overturned by Congress. Moreover, whether the president can ultimately govern is entirely in the hands of the people's votes.

 

Regardless of the role’s influence, everyone’s actions are interconnected and balanced by a collective operating rule accepted by the majority. Thus, we often say, "In the world, you are not your own master."

 

Additionally, there is an important distinction to make: whether in Jungle Chess or the food chain, the relationships are simple and linear. However, in human society, relationships are like a web, with nodes influencing each other in complex ways. This makes the connections more intricate but also more realistic.

 

A president can influence the lives of the people, people can influence the economy’s development, teachers can influence the growth of students, engineers can influence user experiences, investors can influence a company’s fate, children can influence their parents, and bosses can influence the work and family life of employees, and so on.

 

In this web, each of us defines and influences others while being defined and influenced by others. Our connections with others determine our position in society. Our abilities determine the number and strength of these connections.

 

This web encompasses everyone. It is both a constraint and a resource. The more  connections an individual node has, the more constraints there are, the more complex the considerations for decisions, and the greater the influence. Fittingly, the value of this individual is higher.

 

From this perspective, exploring relationships is about exploring value. The extent to which a person's decisions can influence others is a measure of their influence and the value of their decisions.

 

More importantly, the feedback from those we are connected with shapes our image and determines the extent to which we are recognized, which in turn determines the rewards we can obtain in society. These rewards include money, recognition, status, and reputation. For this reason, it is important for individuals and enterprises to provide value to the outside world to gain returns; this echoes the concept I often mention: “Altruism is the best form of self-interest.”

 

However, there is another crucial factor: only in a good system can correct actions yield corresponding benefits and positive feedback. Success is not easy, nor is it guaranteed by effort alone. Only by being careful and thorough in our decision-making can we  strive for excellence and hope for perfection.

Larry Li

Larry Li is a Founder and Managing Partner at AMINO Capital. The firm is a global venture capital firm based in Palo Alto, with investment theme of data moat and network effect.

With over $1 billion in capital under management, Amino has funded hundreds of companies in seed-to-growth stages across Consumer, PLG SaaS, Frontier Tech, AI and Web3, including 25 successful exits, around 20unicorns and over 30 companies which are valued over $100M, such as Chime, Webflow, Rippling, Grail, Weee!, Replit, Turing, Dfinity, OmiseGo, Wyze, Avail MedSystems and Beacons.ai. In 2012 Larry also initiated a fund that invested in ZOOM’s initial funding in 2011.

Larry is recognized as a top 10 investor on 2023 Midas Seed List, and a top 5 AI trendsetter on 2024 Midas Seed List. He is featured on TechCrunch List for first check VCs in 2020, and Forbes Most Notable Chinese American Businessmen in 2021.

Larry completed his B.E degree from Tsinghua University, attended Tsinghua Graduate School of Economics and Management in 1987, and completed M.E degree at University of Florida.

Larry is a renowned speaker on innovation in Silicon Valley, and has over 600K followers on TikTok. He is the author of best-selling book “VC, Demystified”

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