← Glossary
VC & Fund Mechanics
Power law
The reality that a tiny number of investments return most of a fund — winners pay for everything else.
Why it matters
It's why VCs chase outliers, not safe bets: a deal that can only return 2x doesn't move a fund built on the few that return 50x.
Hear it from people who've done it
Get the real-world version of "Power law" drawn from hundreds of conversations with founders and investors.
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Episodes on Venture Capital
First Cheque with Cheryl Mack & Maxine Minter · 17 June 2026
M&A Is a Muscle: Alex Feldman on Buying & Selling in Chaos
Investment Thesis with Kali Norman · 12 June 2026
Taryn Pieterse of Rampersand — How a VC backs early-stage founders
Investment Thesis with Kali Norman · 29 May 2026
Episode Five: Dan Coughlan's Investment Thesis
Related terms
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