When I was heavily involved in the entertainment industry, veterans would tell me that it was a “hit business”. What they meant was that showbiz displays the economic characteristics of a winner-takes-all market: disproportionate rewards accrue to the most successful participants, while a substantial majority earn peanuts.

I have come to learn that venture capital is a hit business too. All your returns are generated by the results of the big wins. In other words, the bestsellers are what matters – not the losers. When you gain a 10- or even 20-fold profit on an original stake, it pays for a lot of bad bets.

Research published this year by the UK’s National Endowment for Science, Technology and the Arts shows that when it comes to job creation, the new companies that really make the difference are not the mass of start-ups – which will never grow much or employ many staff – but the gazelles. These are the ambitious, bold ventures that innovate and build something significant. They are transformational in terms of jobs, technology and wealth creation.