Transcript
There is an apparent asymmetry built into our world. One that stares us in the face no matter where you look. And no matter what we do, it appears to be hard to correct for.
The startup ecosystem is a prime example. A tiny number of companies reap the massive rewards. And a place to find evidence of this, is obviously in the well cited data you can find on the web.
But even more so in the investing strategies of early stage venture studios - they fund a bunch of companies, and expect only a few to succeed. (This is why many of these venture firms fund startups with a potential large market base.)
Moreover, this disproportionate success more often than not comes from unpredictable breakthroughs that reshape industries.
In the financial markets, a similar pattern emerges. A handful of traders and hedge funds achieve record-breaking returns. In scientific research. In music. As I have noted, ‘no matter where you look.’
Here is the gist: Failure is not solely a reflection of individual worth or effort, but rather the natural outcome of a system that rewards the outliers disproportionately.
But what can society do? It can strive for a more equitable distribution of opportunities.
Yet, society's reach has limits. It cannot legislate away the randomness of fortune nor the inherent risks of innovation.
And indeed, the unpredictability of success is, paradoxically, a driver of progress. It's the catalyst for ambition, the fuel for big dreams.
In the end, we must accept that we live in an asymmetrical world.
Winners Take All