Who owns this decision? The assertion that power law returns encompass all performance factors of venture capital portfolios is an oversimplification.
It is a conditional classification, not a universal principle, because regulatory constraints can alter this hierarchy.
For example, in Hong Kong, SFC's due diligence requirements for cross-border investments can make decision quality more critical than potential returns alone.
Governance and adherence to local frameworks are often the true determinants, impacting even the ability to achieve these returns.
Without a clear compliance process, even the best power law scenario can fail.