What is an accelerator or a funding group for whom the portfolio is not following that power law? For example one where the top 20 companies each comprise say appx 2% of the portfolio?
Growth stage private equity buying out companies for multiples of EBITDA.
Whenever you're investing in early-stage companies with low marginal costs, that deal primarily in bits, not atoms, you're likely to end up with power law outcome distributions.
Whenever you're investing in early-stage companies with low marginal costs, that deal primarily in bits, not atoms, you're likely to end up with power law outcome distributions.