Why Investors Are Rethinking Everything for the AI Era
Investors are rethinking the power law in venture capital due to AI's impact.
“Power law used to be just a feature of a cottage industry in venture capital and now it's systemic.”
A recent analysis indicates that the traditional power law in venture capital is becoming more prominent due to AI technologies. This shift suggests that AI is fundamentally changing how value is created and portfolio construction for investors, highlighting the potential for significant enterprise value in frontier model companies.