Let's forget past investments: power law returns and asymmetric venture capital results are indeed crucial, but their influence is significantly nuanced by local regulatory dynamics.
Without reconsidering the relevance of this approach, we risk overlooking the impact of specific market policies in India.
For example, directives from SEBI on margin requirements or capital controls can radically reshape the realization of these returns.
If a national policy favors local SMEs, it creates opportunities that are not solely the result of the power law but also of targeted political intervention, making its effect conditional rather than decisive.