The Abundance Mindset – The More You Give, The More You Get

Last year at Peak XV’s Founder Retreat in Bangalore, a few of the partners were on stage for a candid Q&A session that was moderated by a couple of our founders. One of the questions I was asked was, “What do you believe to be true that the world doesn’t normally agree with?” A variation of this question gained popularity through Peter Thiel, who often asks it in interviews. Since this was a candid session, I shared what was top of mind for me at the time:

“I believe there is a positive-sum answer possible in most life situations. We don’t have to win at the cost of others. There is enough for everyone in this world, and we can work towards constructing win-win solutions. This is the abundance mindset that I would like to operate with, and this is not commonly believed to be true in a world where we believe resources are scarce.”

Immediately after this instinctive response, I realized I probably sounded a bit absurd. Often, we are taught the world is cutthroat, and we have to win by besting others. We are told, “You didn’t win silver; you lost the gold.” Capitalism is rooted in the notion of maximizing market share and outcompeting others as a way to maximize value. This advice was contrary to what the audience was often told: “go big or go home.” We will discuss how one can adopt an abundance mindset in this newsletter.

In my December 2023 newsletter, Unopened Windows, I discussed an example from my class on negotiations at IIMA where two groups negotiated with each other to secure a supply of watermelons in a do-or-die type setting, highlighting how their assumptions hindered them from finding a win-win solution. If the abundance mindset lens was in action, a solution would have been easier to find in a situation like this. 

Is the abundance mindset truly practical? Where is abundance in a time-constrained world? How does one give and yet not feel like they have less? Where is the abundance mindset when, in some situations, there really is a losing side—such as when an employee is asked to leave a company? And what about a situation where a founder and an investor are negotiating the valuation in a certain investment round, where one side benefits and the other side feels stretched? 

To be clear, we are not focusing here on finite games like sports, where winning has to mean someone has to lose the game. Finite games are designed to have winners. Most things in nature, relationships, or businesses aren’t finite games; they are infinite games that are played for the purpose of continuing to play. For a nice read on this topic, I would recommend The Infinite Game by Simon Sinek.

The answer to the above questions, in the context of infinite games, comes down to three things in my view: 

• The first is to not see things for what they are today but for what they can be in future (Can we grow the pie together? Are both sides better off in the long term?),  
• Second is the perspective that victories can risk becoming Cadmean if the focus is too heavily on the win,
• And the third is what your values are, both as an individual and as a firm.

In a recent communication to our Limited Partners (LPs), Peak XV shared that we were voluntarily making some changes to our economics. At first blush, this may seem like a loss for us and a gain for our LPs. But we decided to do it because we believe this will be a way we live our value of “Winning, the Right Way,” creating a positive-sum outcome by aligning our economics to the returns we generate for our LPs. Our LPs win when we perform well as their pie grows significantly. And when the pie grows bigger, we are rewarded with a larger piece of the pie, creating a positive-sum outcome for both. The relationships get stronger as a result. This is an example of points #1 and #3 in action.

When an employee isn’t a good fit for your organization, resulting in you counseling them to leave, it may seem like the employee has lost while the organization gains. In reality, sometimes it’s the best thing that happens to the employee too. They now have a chance to shine in a different environment where their skills and competencies may end up being a better fit. Over time, both sides may be better off for the decision (an example of #1).

It is easy and often tempting to try to squeeze a founder or an investor in a negotiation when one of them is in a position of strength. Consider a situation in which an investor is offering an unfairly low valuation, knowing the company is in desperate need of capital. It sounds like a win for the investor in the short term, but it might impact how the founder treats you in the long term when they realize they haven’t been treated fairly in this situation. No one enjoys losing or being treated unfairly. Your victory hence has a risk of being a Cadmean one (this is an example of #2).

In each of these situations, using an abundance mindset—defined by a belief that finding positive-sum solutions creates room for everyone to benefit from a growing pie—leads to deeper relationships and lasting victories. And this requires us to understand that we are playing infinite games, which means we need to make long-term decisions rather than focusing on how to win in the here and now each time.

I have seen people who want to win every situation and are willing to be unreasonable to get there. I have written about reasonable and unreasonable people in the past, arguing that reasonable people don’t finish last; rather, they build lasting relationships. And this comes down to what your values are as an individual or as a firm. You can be rich and lonely, and eventually feel like a failure, or you can be reasonable, give more in the short term and end up richer with more lasting relationships.

I know it’s not a perfect theory. Much of it relies on a perspective that one needs to have to see it as I am articulating. You can come up with several examples to contest this theory of abundance. But the question to ask yourself is: Is there a benefit to seeing the world through the lens of abundance to create more positive-sum solutions, especially if you are willing to play the long game?

Giving more does not diminish us. Winning more does not enrich us. I have benefited from having an abundance mindset and have used it to build long-term relationships and a richer life. Do give it a try and do write to me if this resonates with you.

Recommended Reads

Three articles I found interesting: 

• Our job as investors is to engage in pattern matching over time to try and improve how we pick where to invest. This study published in Nature reveals how the brain unconsciously detects patterns. Neurons in regions like the hippocampus integrate “what” and “when” information, enabling the brain to predict future events without conscious effort. 

• Sarah Ogilvie’s The Dictionary People uncovers the unsung volunteers who contributed to the creation of the Oxford English Dictionary (OED). Through meticulous research, Ogilvie traces over 3,000 contributors who helped collect and organize word usage, highlighting how the OED became one of history’s largest crowdsourcing efforts. The book celebrates diverse figures—from scholars to asylum patients—who played key roles in shaping the dictionary.

• India won six medals and finished in 71st position in the Olympics. We have a long way to go, but hopefully we can only go upwards from here. This Economist article talks about how this Olympics was lopsided with the US and China still dominating the medal tally. It also provides a different framework to look at relative performance, which still shows the US on top. There is hope for others, as the percentage of countries winning at least one medal and those winning five or more has consistently increased, indicating a more level playing field as sports globalize. 

If you have time for longer reads:

Your Erroneous Zones by Wayne Dyer

In Your Erroneous Zones, Wayne Dyer explores how individuals can overcome self-destructive behavior patterns, known as “erroneous zones,” to achieve greater happiness and personal fulfillment. The book argues that many of the problems we face in life, such as guilt, worry, and low self-esteem, are self-created by our thinking patterns. Our lives are increasingly centered on seeking approval on social media, and many of us live with guilt from the past or worry about the future. Dyer provides practical advice for breaking free from negative thoughts and habits to build a more empowered and fulfilled life.

Zen in the Martial Arts by Joe Hyams

Zen in the Martial Arts by Joe Hyams offers a blend of martial arts lessons and Zen philosophy. This book is an easy read with short chapters filled with personal anecdotes from Hyams, who reflects on the mental and spiritual aspects of martial arts beyond physical combat. The book emphasizes how Zen principles such as mindfulness, patience, discipline, and humility can be applied to both martial arts practice and everyday life. There are also lots of interesting anecdotes from his experiences with Bruce Lee.

Do write in at gv@peakxv.com if my interests intersect with yours! Click here to read more articles on Peak XV’s blog. For more editions of Connecting the Dots, click here. I’m also on LinkedIn and Twitter.