An interesting topic: what is the essence of investment institutions?

In the traditional impression, VC is just wealthy people pouring money into startups. But if you think about it carefully, a true investment institution is actually a business. This business has its own operational logic, expansion goals, and optimization directions.

Take those leading investment institutions as an example. They are essentially a Firm—a real business entity. The original purpose of its founding was to grow bigger and better. As the scale increases, this operational system becomes more and more refined. But this also means that many characteristics of traditional VCs may not be applicable to these institutions at all.

For example, flexibility, decision-making speed, attention to small projects... These are things you can see in small, boutique funds, but in large investment organizations, they are often smoothed out by processes and systematic regulations. This is not to say it's bad, but every model has its costs.

So next time you observe the actions of an investment institution, don't just look at the money—look at its operational logic—that's what truly determines what it can do and what it cannot do.