Venture Capital & Investing

Joe Tsai’s Three Levels of the CFO—and Three Levels of VC

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English translation of the Chinese post originally published 2021-01-24. Translated 2026-10-27 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Joe Tsai may well have been the greatest gift Jack Ma ever received. Tsai describes three levels of CFO contribution: avoiding financial detours; helping the CEO commit to moving forward at critical moments, beyond risk control; and allocating resources. Robin proposes three corresponding levels for venture capital and private equity. First, invest in promising companies, help them grow quickly, and exit. Second, raise funds by earning shareholders’ trust, creating wealth for them, and helping them transform. Third, use investing and fundraising to change industry structures and support industrial upgrading. These levels reinforce one another in a flywheel. Robin asks what the three levels are in your own field, observing that helping others succeed can bring success to yourself.

Key points

  • Tsai’s three CFO levels: avoid detours, help the CEO commit, and allocate resources.
  • Robin’s three VC levels: investing, fundraising, and changing industries.
  • The three levels reinforce one another to form a flywheel.
  • ‘Helping others succeed can bring success to yourself.’
Trees at different stages of growth with connected roots on cream paper, suggesting patient cultivation and lasting value.
Venture capital & investmentThematic illustration · AI generated

Full text — English translation

Joe Tsai may well be the best gift God gave Jack Ma—perhaps the single best. Tsai sees three levels for a CFO: 1. Avoid financial detours. 2. Beyond risk control, help the CEO resolve to push ahead at critical moments. 3. Allocate resources. What, then, are the three levels in venture capital/private equity? In my view: 1. Investing: back promising companies/help them grow quickly/exit. 2. Fundraising: earn shareholders’ trust/create wealth for them/help them transform. 3. Change: use investing/fundraising to reshape industries/promote industrial upgrading and transformation. Levels 1, 2, and 3 reinforce one another and can form a flywheel. Another indispensable ingredient for achievement in any industry: Robin says, ‘Helping others succeed can bring success to yourself.’ What are the three levels in your field? Tsai sees three levels for a CFO: 1. Avoid financial detours. 2. Beyond risk control, help the CEO resolve to push ahead at critical moments. 3. Allocate resources. What are the three levels in venture capital/private equity? In my view: 1. Investing: back promising companies/help them grow quickly/exit. 2. Fundraising: earn shareholders’ trust/create wealth for them/help them transform. 3. Change: use investing/fundraising to reshape industries/promote industrial upgrading and transformation. Levels 1, 2, and 3 reinforce one another and can form a flywheel. Another indispensable ingredient for achievement in any industry: Robin: ‘Helping others succeed can bring success to yourself.’ What are the three levels in your field?

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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