Pushing for the summit: the assertion that venture capital returns always follow a power law is an oversimplification.
In Hong Kong, the strict regulatory regime of the SFC and the listing channels of the HKEX can significantly modify these dynamics, weakening the full expression of these laws.
If the investment environment favors quick acquisitions and low-margin exits rather than exponential growth, the distribution of returns would become more normalized.
In this scenario, decision quality and ROI ceiling might be less dominant than the ability to navigate a saturated market.
For example, investments in high-growth but low-potential unicorns are more common here.