# Introduction

We often hear judgments of others’ behavior through exclamations like “It’s not in their best interest” or “Find someone who benefits.” There’s no more erroneous statement. Unfortunately, most people live in a world full of illusions created by their own emotions.

First and foremost, let’s grab a chainsaw, an axe, and a microscope to delve into the contents of our skull.

Measure your emotional tone. What do you feel when you speak, or what emotion is the person trying to convey when they say, “They do this because it’s beneficial for them,” “It’s paid for, so they do it,” or “Everything is bought there”?

Do you notice a sense of moral superiority? Selling, profit, calculation—they are soulless, spiritless, and therefore unequivocally evil. And at the same time, they’re incredibly large, powerful, and unshakable. But simultaneously, they’re utterly insignificant to the monumental colossus of human spirituality. This colossus slightly steps aside on payday and runs to the store for beer.

But no—the reality is not about the psychology of a poor person who explains their lack of money with their own high moral standards. That’s what most people think.

Ask anyone, and they’ll say, ethics are good, profit is that unpleasant thing.

Imagine millions of people, each evaluating their own actions based on ethics and others’ based on profit.))) What happens? Millions act according to their own moral and ethical principles, whether high or low—it doesn’t matter. Their own principles are always “high.” As a result, they struggle to achieve any efficiency and, Heaven forbid, additional profit.

# “Solution Button”—Emotions Override

Why is this the case?

Because in a person, you can identify two main dominants. Some call them animal and spiritual instincts. I would phrase them as animal and intellectual instincts.

The animal can love, feel sad, hate, get angry, be loyal, cunning, empathetic, kind, hungry, fierce, social, asocial, altruistic, selfish, sycophantic, submissive, or dominant.

Humans can do this too—like any other animal. We are related to them in this. It’s this emotional output we find in pets. We even say that pets are better than people. And indeed—they’s animal instincts barely influenced by intellect. A dog’s EQ is higher than a human’s. But humans have IQ reserves.

The intellectual instinct is a derivative of our wrinkled gray matter cortex. It’s our calculator and massive storage device, allowing us to perform complex calculations, operate large data sets, find correlations, chains of relationships, plan, model the behavior of complex objects, construct intricate mechanisms, assess risks, and identify causes and effects.

Inside us, these two instincts interact and govern our behavior. They are like a horse and a rider. And here we immediately ask the question—who is actually riding whom? And how to determine it?

It’s quite simple.

When intellect is on top, it manages emotions. When emotions are on top, they manage intellect.

# The Emotional Trap in Decision-Making

Why is this?

Because emotions can exert significant control over our decision-making processes. In the context of venture capital firms, private equity companies, and startup engines, understanding this balance between emotion and intellect is crucial for making sound investment decisions.

## The Role of Emotions in Investments

Imagine trying to quit smoking—how often do you find and read articles like “Why You Shouldn’t Quit Smoking Cold Turkey” and watch YouTube videos where they say how Churchill, a smoker, lived to 90? Or when you crave a chocolate bar—you convince yourself that you’ll hit the gym tomorrow. By placing these cues, you’re allowing your intellect to tell you—logical and detached—while your instincts may act impulsively.

Similarly, investors might feel an emotional pull towards certain startup jobs or investment opportunities near me, often influenced by immediate gratification rather than long-term benefits. This is where angel investors and venture capital firms like Co-Founder AI come into play, helping balance these instincts with strategic planning.

## Rationality vs. Emotionality in Business

Businesspeople often believe that others, like ycombinator companies or venture capital businesses, act rationally to maximize profit. However, this isn’t always the case. Many entrepreneurs and investors are driven by immediate emotional rewards rather than calculated, long-term gains.

This behavior can lead to inefficiencies within private capital firms and VC companies where decisions are swayed more by momentary feelings than by data-driven strategies. Equity firms and business investors must navigate these emotional landscapes to foster sustainable growth and innovation within their portfolios.

# Understanding the Dual Instincts

Humans possess both emotional and intellectual instincts that work together to influence behavior. In the realm of private equity firms, venture capital firms, and startups, recognizing and managing these instincts is essential for success.

## The Animal Instinct

The animal instinct encompasses our basic emotions and reactions—love, hate, anger, loyalty, etc. In business, this can translate to passion for a project, frustration with setbacks, or loyalty to a team. However, unchecked emotions can lead to irrational decisions that may not align with business goals.

## The Intellectual Instinct

The intellectual instinct involves our capacity for logic, planning, and strategic thinking. In the context of venture capital companies and startup engines, this is where data analysis, market research, and financial forecasting come into play. Balancing this with emotional intelligence can lead to more informed and effective decision-making.

# Balancing Emotion and Intellect in Investments

Finding the right balance between emotion and intellect is crucial for investors and entrepreneurs alike. Co-Founder Ai emphasizes the importance of leveraging both instincts to drive successful venture capital and private equity investments.

## Strategies for Effective Decision-Making

1. Data-Driven Analysis: Utilize comprehensive data to inform investment decisions, minimizing emotional bias.
2. Emotional Intelligence: Develop the ability to recognize and manage emotions in yourself and others to foster better business relationships.
3. Strategic Planning: Implement long-term strategies that consider both market trends and emotional factors influencing stakeholders.
4. Balanced Portfolio: Diversify investments to spread risks and capitalize on both emotional and intellectual opportunities.

# Conclusion

Don’t seek others’ profit in any events. Instead, look for who they are trying to please and inspire. By understanding and balancing your emotional and intellectual instincts, you can make more informed and effective decisions in the world of venture capital, private equity, and startup investments.

Co-Founder Ai is here to help you navigate these complex dynamics, ensuring that your investment strategies are both emotionally intelligent and intellectually robust.