Concentration is when a few big pieces make up most of a total. The video shows a mayor who reads out a record month for the town’s bakeries, until the accountant finds that one wedding order made up most of it.
A short explainer video, under a minute. The mayor, the accountant and the bakeries are an illustration; the video labels its numbers as an illustration.
At a glance
What Concentration Is
That has a name: concentration. It is when a few big pieces make up most of a total.
The Same Month in Numbers
The video then shows the same month with round numbers and labels them an illustration.
Why It Matters
The video turns this into one question: what would the total look like without the biggest piece?
Our report on Crunchbase’s third-quarter venture data notes that Crunchbase says global venture funding was $159 billion, and that a record 27 companies raised rounds of $1 billion or more. Crunchbase says around a third of all global venture capital raised in the quarter went to those 27 companies.
From our news coverage
The bakers are an illustration. In the report, Crunchbase says no single company raised funding in the tens of billions, and that eight companies raised $3 billion or more. It also says its data is as of 2 October and based on reported figures, so the numbers in our report are Crunchbase’s and not independently verified.
The Business Engineer Lens
Where this idea sits in the Business Engineer library:
The Business Engineer framework maps where each part of the AI stack sits and who holds the leverage. These pills are short lessons from the same library.
Backlog builds on Concentration. The backlog lesson warns that if one customer makes up most of the backlog, the risk sits with that customer.
An Anchor Customer(lesson unlocks soon) trades off with Concentration. A build held up by one buyer is fragile: if the anchor walks, the loan is in trouble.
Gennaro Cuofano is a tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. By day he is an executive at a tech startup. He is also a business analyst and former assistant controller, with an International MBA with an emphasis on corporate finance (2012). His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer (businessengineer.ai), his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. See how we source.
Scroll to Top
Discover more from FourWeekMBA
Subscribe now to keep reading and get access to the full archive.
