Sometimes, people take certain risks and have to live with the consequences all their lives, however, there are those who take these risks and they turn out to not only be smart moves for them but also become their gateway to even more success and stardom. This is the case of Alibaba’s Co-founder, Joe Tsai who took a risk to leave his well-paying job to join Alibaba when Alibaba didn’t have any hopes of becoming a household name. Let’s find out how Joe Tsai took a risk that earned him an $8.1 billion net worth in this piece.
Who is Joe Tsai?
Born as Joseph Tsai to Paul C. Tsai and Ruby Tsai in Taipei, Taiwan in 1964, Joe Tsai was the first of three siblings to his father who was a 2nd generation lawyer. His parents were immigrants who had escaped to Taiwan during the Chinese Civil War in 1949 and as he turned 13, he relocated to the U.S. where he began schooling at the Lawrenceville School in New Jersey. While in school, he was a member of Cleve House and he played Lacrosse and soccer before he graduated and went on to enroll in Yale University where his father was an alumnus. At Yale University, Joe Tsai played in their lacrosse team for the four years he spent there, and even now, he is still a supporter of the Lacrosse team. At the end of his four years at Yale University in 1986, he was awarded a Bachelor of Arts in Economics and East Asian studies. 2 years later, he was awarded a J.D. from Yale Law School.
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Tsai’s Gratifying Career
Post-graduation saw Joe becoming a tax associate for the white-she law firm of Sullivan & Cromwell and in 1991, he got acknowledged as an attorney to the New York bar. He later switched to private equity and entered Rosecliff Incorporated as general counsel and Vice President after spending three years at the law firm. In four years, Joe Tsai was on his way to Hong Kong where he joined Investor AB and was in charge of its Asian private equity investments. In 1999, his paths crossed with Jack Ma in Hangzhou after he got introduced by a friend who was on the verge of selling off his own company to Jack Ma. Tsai got interested in Jack Ma’s fascinating personality and his ideas of developing an international export and import marketplace even though what finally got him hooked was Jack Ma’s acolytes and their enthusiasm and energy.
Taking A Billion-Dollar Risk
After meeting Jack Ma and hearing his plans and goals for Alibaba, Joe Tsai made a move that may have seemed foolish to anyone at the moment but fortunately, that move is the reason he’s currently worth $8.1 billion today. The risk was him quitting his job at Investor AB which was paying him $700,000 per annum and offering to work with Jack Ma as a founding board member for a meager sum of $50,000 which was next to nothing. Barely a year after joining Alibaba, he was already negotiating and working out his way with investors to raise more capital. SoftBank, Fidelity Investments, and Goldman Sachs are some of the investment sources that invested in Alibaba at that time. Tsai was able to raise $25 million and a few years later, he led the efforts that resulted in the unveiling of Alibaba’s headquarters in Hong Kong. He made great efforts that enabled the listing of Alibaba’s shares in Hong Kong. He also struck a deal with Yahoo as a strategic investor and was in control of Alibaba’s first public offering which happens to be the biggest public offering in U.S history. He has worked as a chief operating officer, financial officer, and founding board member for Alibaba and he solely established and secured Alibaba’s legal and financial structures due to his experience in law and venture capital. Through his committed efforts, Alibaba debuted on the Hong Kong stock exchange market in 2007, and in 2013, he got promoted to executive vice chairman of Alibaba.
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Tsai’s Incredible Investment Portfolio
Joe Tsai, despite being born Chinese, holds a Canadian passport and is a member of the Investment Committee at Alibaba such as Koubei, Cainiao Network, and Ele.me. He is also the co-founder of the Major League Soccer franchise, Los Angeles FC. Furthermore, he is the co-founder of Blue Pool Capital and he also serves as a board member at Premier Lacrosse League and Ant Group. He is currently the second largest individual shareholder on Alibaba, and he also owns 100% shares with the Brooklyn National Basketball Association. Isn’t that incredible?
A True Giver: Tsai’s Philanthropy
As an alumnus of Yale Law School, Tsai donated $30 million to the school in 2016 in honor of his father who was also an alumnus. This earned him the renaming of the School’s Chinese Center to his father’s name; Paul Tsai China Center. Together with his wife, Clara Tsai, he runs a foundation called Joe and Clara Tsai foundation where most of their donations to philanthropy come from. One of their notable donations includes the donation of Covid-19 supplies (nose masks, goggles, ventilators, and medical supplies) to New York and San Diego hospitals. Their foundation also donated $50 million to support social justice and economic equality in BIPOC communities and in 2020, they donated $50 million to the Lincoln Center. Their latest donation is the donation of $220 million to the Wu Tsai Human Performance Alliance.
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Sources: Forbes, Bloomberg, Celebrity Net Worth.
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