Larry Li featured on TechCrunch List, a Founder-Recommended “First Check” VC Directory
Larry Li is a Founding Partner of Amino Capital who has recently been listed as one of the investors in the TechCrunch List, which is a verified, curated list of investors who have demonstrated a commitment to first checks and leading rounds from seed through growth, organized by market vertical.
I recently had the chance to sit down for a chat with Larry to learn more about the initiatives that he and the other partners at Amino Capital have taken to support entrepreneurs and the startup ecosystem at Silicon Valley, in addition to what Amino Capital is now focusing on in terms of investment trends and opportunities both during COVID-19 and afterwards.
A VC with Initiative
Amino Capital has made first checks and seed investments into hugely successful companies like Chime Bank ($5.8 billion valuation) and Weee! ($2.8 billion valuation). With strong connections to universities like Stanford and UC Berkeley, as well as companies like Google, Amino positions itself as a VC firm that also takes on incubator and accelerator responsibilities to support entrepreneurs from all backgrounds, whether first-time or seasoned.
“It’s an honor to be on the TechCrunch List. Venture investments are an important driving engine of innovation, especially in Silicon Valley. We started almost 10 years ago with a mission to become a respected early stage venture firm, and are fortunate to have quite a few successful companies. We are right at the entrance of Palm Drive outside Stanford University, so we provide office spaces for students and professors to brainstorm ideas, meet successful entrepreneurs and bridge Fortune 500 companies globally with talents to work on real world use cases. We also enjoy going back to Google every year to share our vision and the latest tech trends we’ve seen at the frontline of investing in extremely cool ideas, many of which were founded by ex-Googlers. ” Larry said.
A Launchpad for Immigrant founders from Asia
A unique advantage that Amino has is that it is based in Silicon Valley, but also has a strong Asian background. As such, they have regularly hosted initiatives to support Asian American entrepreneurs, and have insight into how to collaborate internationally with companies in Asian markets.
“We invest in all kinds of people, including a lot of new immigrants. This comes in naturally, because across the companies in Silicon Valley and in the U.S., among the top CEOs and the top entrepreneurs, half are non-U.S. born citizens. They are a very positive force driving innovation, so we invest in quite a few immigrant-led companies. Also, because our (Amino’s) root is coming from Asia, we have a natural ability to collaborate with international companies and we put a lot of emphasis on collaborating with companies from China, Japan, Korea, and other Asian countries. Our connections and understanding of different countries’ policies can help entrepreneurs go to the international market and also help them to identify the risks and the things they should avoid, such as how to protect their IP and how to navigate the business ecosystems overseas.”
Investing Focus: Data and Team
In terms of investing, Larry explains that Amino Capital is focused on the potential of big data, which leads into investing in industries like fintech, mobility, consumer, SaaS and healthcare. When looking for companies to invest in within these verticals, Larry places the greatest emphasis on the team.
“We realized that an entrepreneur’s past experience is very important. It doesn’t have to mean founding a startup before, but a person who has accomplished a lot before has a lot more importance in terms of the journey for an entrepreneur. Starting a company and making the company grow is a very difficult task, so people must be very flexible, have a lot of resilience, be able to learn constantly, and be able to solve all kinds of problems. It’s not just one technology or one degree that can make a successful entrepreneur, it is a person who can grow and learn constantly. Even if they are right out of school, do they have anything that they are proud of and have they accomplished anything significant in school or during their spare time? If somebody just did their schoolwork, or even if they worked for good companies like Google or Facebook, if they just do their work and are done, then this is not the type of people who we invest in. We invest in people who can do extra work and go the extra mile to accomplish things that they are passionate about. We also want to know how long the team members have known each other and whether they could work well together. In terms of their startup, how long have they been working on it and how fast can they move? For example, if they worked on something for one year, but we, since we are very technical, can tell that other people can do it in three months, then this team might not be good enough. So, understanding how much progress they’ve made can show us the team’s capability and execution.”
Investment Research and Opportunity in COVID-19
Amino is also constantly doing their own research into current trends, both to advise and support their portfolio companies as well as to keep an eye on new opportunities. In terms of COVID-19, Larry has noted that a new wave of applications, including those focusing on video conferencing and streaming, have high potential.
“Amino is doing a lot of research into current tech trends, and we have seen that big data and AI can cut through all hype. Our portfolio companies can demonstrate this: AI-powered people detection Wyze Cam has launched a $50 outdoor camera with six months of battery life, while AI predictive personalization digital bank Chime now boasts a $5.8B valuation. Also, we have seen consumer behavior changes in response to the pandemic. People will get used to video conferences, even for medical visits, fitness classes, and birthday parties. For example, Playlist has recently seen significant growth for hosting celebrity concerts and happy hours.”
Future Steps with the Startup Ecosystem
In response to current times, Amino now has even more meetings than before through video conferencing, as people don’t have to drive around anymore. Since March, they’ve invested in over 10 startups, and also recently co-hosted an online pitch event with HYSTA for entrepreneurs during COVID-19 times. Amino is also aiming to take advantage of the at-home situation to work more closely with university students and expand their event offerings to further engage with the startup ecosystem. Larry now can find time to actively engage with a large audience on social media to teach about entrepreneurship and Silicon Valley culture almost everyday.
“We will take this opportunity to provide more online training and seminars to students and entrepreneurs, so as long as they think of starting a company, we could be the first to know and potentially fund these companies.”
Written by Anke Hao, U of Chicago, 23'
