Capital Race & Track Lock-in

When an emerging technology emerges, leading capital concentrates investment in the 'first visible frontrunners,' using excess funding to create market signals. They attempt to secure mindshare and hiring advantages before the technology is truly validated, leveraging fund size and investor backing as persuasive force. This creates a self-reinforcing cycle where latecomers struggle to compete even with technically superior solutions.

Read the daily articles behind this idea on the Chinese edition.