Dear subscribers,

Today, I want to talk about the immigrant scarcity mindset and why it holds us back.

Many immigrants work hard but play it safe. They feel obligated to pursue society’s definition of success instead of their own because their parents sacrificed so much to give them a chance.

Dave Lu is the founder of Hyphen Capital, a fund that backs Asian American founders. I spoke to Dave about:

1. Why the immigrant scarcity mindset holds us back

2. Five tips to break free from this scarcity mindset

3. Examples of immigrants who overcame the odds

Let’s dive in.

Why the immigrant scarcity mindset holds us back

Welcome, Dave! To start, what is the immigrant scarcity mindset?

The immigrant scarcity mindset is when you see life as a zero-sum game and end up:

1. Saving and hoarding resources

2. Playing it safe to avoid losing what you have

3. Following society’s definition of success instead of your own

This mindset is common among 2nd-generation immigrants because our parents came to this country with very little. Yet, it’s also the very thing that holds us back.

Why does this mindset hold people back?

If you have this mindset, you might be too afraid of losing your job to:

1. Push back on other people’s opinions

2. Take a risk on a new opportunity that could have big upside

I think both are a big part of moving up the corporate ladder in America.

Did you struggle with this mindset when you were growing up?

Yes, in Asian cultures, there's a strong sense of obligation to your family.

My parents immigrated from Taiwan and faced challenges like racism and limited resources. So growing up, I felt obligated to them for giving up so much to let me have a better life in the US.

I think this starts to become toxic when you just defer to authority and do what your parents or bosses want, regardless if they’re right or not.

For example, my parents wanted nothing more than for me to get a graduate degree at a top school. I was lucky enough to get one from Stanford, but I still felt empty coming out the other side. I still didn’t know what I really wanted to do.

It’s funny that many immigrant parents just want you to get into a top school. It’s not a means to an end for them, it’s their end goal.

Yes, many immigrant parents believe that their kids will be set for life if they can get into a top school. Unfortunately, this leads some parents to put their kids through hell to get into these colleges. This sets their kids up to have mental breakdowns if they don’t get in. I think it’s very unhealthy overall.

How did you break free from the immigrant scarcity mindset in your career?

I had spent my entire life jumping through hoops — getting into Penn, working in consulting, going to Stanford, and then working in big tech.

When I was at eBay after graduate school, I realized that many people know the right thing to do but simply won’t do it if it hurts their careers. I was told specifically: “Don't rock the boat because it's not worth it.”

I finally decided to start my own company when I realized that I wasn’t going to be happy staying on this “safe” path.

It’s also worth noting that the “safe” path often isn’t safe at all. Just look at all the tech folks getting laid off from corporate jobs right now.

You’ve said that immigrants are workhorses, not racehorses. What does that mean?

Think about the difference:

1. Workhorses show up and do what they’re told every day. They don’t chase what they want.

2. Racehorses, on the other hand, are proactive and tackle increasingly greater challenges. They’re chasing gold.

In tech and many industries, there's an army of immigrants doing the grunt work while the people at the top get the credit.

It's like the Chinese railroad workers who came to the US. They built the railroads, but it was railroad barons like Leland Stanford who got the recognition.

The point is — if you don’t speak up for yourself, nobody will.

5 tips to overcome the immigrant scarcity mindset

So what are some steps that people can take to overcome this scarcity mindset?

Great question, I think there are a few steps that people can follow:...