Masters in Business · Friday, July 3, 2026
Mamoon Hamid describes venture capital as a 'power law business' where a few exceptional companies drive most of the returns. He notes that currently, 90% of AI revenue is concentrated in just two companies, highlighting the challenge and importance of identifying these category-defining winners early on to avoid conflicts of interest.
“Yeah, venture is a power law business. There's no question about it. And if you already look at like there's this article I read the other day where ninety percent the AI revenue is in the hands of two companies. That's crazy opening and anthropic.”
“So in the remaining ten percent is in a bunch of companies that are excellent companies. But the scale of those two other companies is so massive, right, that it dwarfs all the other good, great work that's happening in tons of other companies that we've backed.”
“And so the conflict typically we're joining the boards of these companies and if you have, you know, confidential board level information, and you don't want that, Like now you're invest in a competitor, all of a sudden, there's a chance of conflict, conflict of interest, and so we definitely try to avoid that conflict of interest.”