Startups and Power Laws

Most startups are a failure, the reason vc is interested in funding them is that a power law controlled unicorn can make up for the losses of the rest of the failures.

The interesting part is that power laws apply to recessions as well. It seems we are due for a good ol fashioned recession to clear out all the bloat. AI might not be a great investment, but it will be a great tool that will shape the future.

Source: https://www.businessinsider.com/ai-boom-huge-winners-wipe-out-overhyped-startups-vc-investor-2025-11