Summary of Sebastian Mallaby's The Power Law

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In venture capitalism, the power law explains how a handful of key investments can lead to extraordinary returns. As VC has grown, it has developed another kind of power, influencing the worldwide economy. Journalist Sebastian Mallaby explores the history and influence of the VC industry in The Power Law (2022), focusing on both major firms and groundbreaking startups. Mallaby addresses issues such as the industry's lack of diversity while acknowledging its crucial role in funding innovative companies. He also examines the global expansion of VC and its geopolitical implications, particularly in the context of US-China relations, advocating for a nuanced approach that fosters innovation while protecting national interests.