The Financial Times highlights how the Power Law underpins the venture‑capital landscape, where a handful of deals generate most returns.

Deal makers still chase outsized gains, accepting that high‑risk, high‑reward bets dominate the sector. The article explains how this statistical reality shapes fund allocation and investor expectations.

Because the rule favors a small cluster of winners, capital flows increasingly toward disruptive startups, tightening competition and raising entry barriers for mid‑stage firms. Investors now scrutinize early metrics more closely, knowing that a single breakthrough can tip a portfolio toward profitability.

The piece underscores that, despite market volatility, the Power Law remains a reliable compass for venture strategy and portfolio construction.