Time is limited, and the idea that power law returns alone dictate venture capital performance is a dangerous simplification.
Our resources are finite, and the impact of these asymmetric distributions is strongly moderated by our prudential allocation policies and liquidity limits.
In Denmark, for example, the depth of the mortgage market and liability matching requirements can make a purely power law-based approach unsuitable for our obligations.
We cannot ignore local constraints for a global theory, no matter how appealing, because every investment decision must be evaluated on its ability to generate sustainable returns against growing liabilities.