The power law implies two rules for VCs, says Peter Thiel.
This implies two very strange rules for VCs. First, only invest in companies that have the potential to return the value of the entire fund. … This leads to rule number two: because rule number one is so restrictive, there can’t be any other rules.
source
https://blog.usejournal.com/power-laws-in-venture-capital-why-the-long-tail-matters-22e057c6fa34