VNETURE VIBES
The most productive way to deploy capital is not simply buying fixed assets. True productivity comes from enhancing the effectiveness of people. When you create something truly valuable, you improve human productivity, and that is the foundation of all great companies.
Any great company continuously leverages the productivity of its people—whether through AI, software, or other innovations.
When I think about investment businesses, my role is clear: I must intermediate long-term, productive capital with highly productive people and companies. But why is this important? Why is this valuable to anyone?
Capital should always be deployed by the most productive people. This principle holds whether it’s institutional investors allocating funds to managers or managers allocating resources to entrepreneurs.
Many of these ideas align with venture capital. But why should they be limited to private markets? Public companies don’t stop investing in productivity just because they’ve gone public. The question is: how do we screen for those that continue to drive productivity? A key metric is gross margin per employee—does it continue to improve?
The public market is saturated with ordinary, non-entrepreneurial people. They operate under rules imposed by similarly non-creative individuals. My goal is to bring the energy and mindset of venture capital into the public markets—focused on relentless growth, problem-solving, and better service distribution.
This is my core philosophy. I practice alternative venture capital in public markets. No matter how large a company is, it should grow with astonishing momentum, accumulating continuous, small improvements forever.
The Brand I Should Build
The companies I invest in are the best-performing in terms of productivity. Even after going public, businesses should focus on long-term growth.
A $100 million company can become a trillion-dollar company. The key difference between stagnant businesses and compounding ones lies in their ability to continuously deploy capital into structures that improve productivity.
We often measure gross margin per employee as gross margin divided by the number of employees. However, the reality works in reverse:
A company with $100K gross margin per employee and 100 employees generates $10M in gross margin.
If productivity doubles with the same headcount, gross margin rises to $20M.
If productivity increases tenfold, gross margin reaches $100M.
Expanding to 1,000 employees while maintaining this profitability creates a $1 trillion business.
The company’s platform should remain as lean as possible, determined by the leadership’s vision. This principle holds within any truly profitable business.
A Fractal Approach to Productivity
Productivity should be approached fractally, with keen attention to every unit of business. Those who allocate capital must be highly sensitive to both human and financial productivity.
Every small unit of a business should be highly profitable and continuously improving. Once improved, profitability should be maintained for the long term. This applies to everything—meetings, communication, production hours, supply chain efficiency, sales effectiveness, and more.
Businesses often neglect these micro-efficiencies, leading to redundancy. The smallest inefficiencies compound into massive losses over time.
The Power of Intellectual Capital
True value creation occurs when human intellect meets real-world problems. Businesses should be deeply committed to evaluating intellectual contributions fairly and investing heavily in human capital. Every individual brings unique value, and companies must measure, recognize, and reward productivity and creativity accordingly.
The greatest leverage we have is human intellect.
Breaking the Mental Barriers to Productivity
Why don’t people act or strive for productivity? Is it against human nature? I don’t believe so. Instead, people are mentally blocked—by bad culture, bad processes, and bad rules. If we strip away cultural tediousness, we unlock true productivity.
Many entrepreneurs and managers face resistance from ordinary thinkers, causing them to lose momentum. We must break free from mental constraints. This is the only way to live a truly productive life.
