Where is the full expression of causality here?
The notion that power law returns are simply a subcategory of venture capital performance factors is an oversimplification that masks the fundamental dynamic.
These laws are not just a 'factor'; they define the intrinsic environment in which all other factors must operate, making the impact of a quality decision conditional on the ability to identify and exploit rare outliers.
For example, in Hong Kong, capital flows toward China and arbitrage opportunities are not just factors; they are the market, and ignoring this dynamic means missing the point of maximum leverage.