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Idea from Brendan Foody on 20VC - 2025

Data Quality Is Power-Law: The Top 10-20% of Contributors Drive Most Model Improvement

Data Quality Is Power-Law: The Top 10-20% of Contributors Drive Most Model Improvement

Insight

Foody claims data quality is power-law, not additive: on a 100-person project most of the model improvement comes from the top 10 to 20% of contributors, mirroring how value concentrates inside any company. The defensibility therefore lives in two compounding assets, the referral network that sources rare 10x experts and the matching layer that routes them to tasks where they shine, which he argues is very hard to copy. It is his answer to the charge that every labor marketplace now says the same things in podcasts.

Source Context

"The outcomes of data and the people that contribute to it are extremely power law. Similar to a company, if you have 100 people on a project, oftentimes the majority of the model improvement is coming from the top 10 to 20% of people." — 12:30(https://www.youtube.com/watch?v=FzftvxA84z8&t=750s)

"When we're able to build proprietary advantages in the way that we have, not only our supply base and the referral network to access them, but also the way that we match those experts with the opportunities where they're going to do phenomenal work, it creates so much value for customers that it's extremely difficult to compete against." — 13:00(https://www.youtube.com/watch?v=FzftvxA84z8&t=780s)

Related Concepts

power law | A Players | moat | outcomes

StrategyEconomicspower-lawtalent-densitymoatsreferral-networkbrendan-foodymercor