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【A Must-Read for Startups】The Spotlight Won't Save You: 90% of Market Value Belongs to 10% of Companies
Have you noticed? In the AI frenzy, everything seems to be growing wildly, yet a brutal K-shaped split is quietly taking hold around the world. The ten largest companies in the S&P 500 now make up close to 40% of the index, and market value keeps gathering around a handful of names.
What about Taiwan?
We ran the numbers on Taiwan's listed companies since 2015 using public financial statements, and the result is striking. The top 10% by market value went from 77.5% of total market value to about 90%, while the bottom 50% fell from 3.9% to just 1.4%.
Real Profit Holds Up the Upper Arm
Many people will say this is just money chasing popular stocks, but look at profit and the story gets harder to dismiss. The top 10% earn about 89% of all profit, while the bottom 50% get about 1%. There is real profit holding up the upper arm of the K.
If Listed Companies Are Splitting, Why Would Startups Be Spared?
Resources and capital moving toward the biggest players is already the trend. It is happening among listed companies, and startups facing listed companies are in the same position.
Venture capital shows the same thing. KPMG's global venture report in October said the market remains bifurcated, with a lot of the investment going into top-end deals. Startups are the smallest and have the fewest resources, so they need to be more alert to this trend.
The Spotlight Can't Help You
You have surely seen a company like this: funding news one story after another, a valuation that keeps climbing, and a core business that is still losing money when you open the income statement. The spotlight can get a company noticed quickly, but it can't produce profit. As resources and capital move toward the biggest players, companies that got noticed but have no core value have, in fact, often ended up on the lower arm.
Back to the Essence of Profit
K-shaped splits don't come in only one form. Today it is market value and capital, and no one can say where the next one will appear. What a startup can do is go back to the essence of profit, so that whichever split arrives, it is in a position to land on the side that benefits.
The first thing is real profit, which should come from the core business and be able to last, without relying on one-off income.
Next is being able to last through the wait. The market may not reward you right away, and cash and cost structure need to carry you until the moment comes. A company that depends on its next round to keep going may never see that day.
Finally, be able to handle the growth. When the opportunity comes, if the team and management can't keep up, the opportunity turns into a problem.
Three Questions to Check How Ready You Are
1. After all that exposure, what actually stays with you in the end?
2. If there were no chance to raise money for the next two years, could the company last?
3. If sales suddenly doubled, could your team and processes handle it?
Closing
Resources and capital are moving toward the biggest players, and the spotlight can't help you. Pursue the essence of profit, so that whenever a K-shaped split arrives, you are on the side that benefits.
Data note: Taiwan figures were calculated by VENTURE⁺ from Market Observation Post System, TWSE and TPEx data. Listed companies, grouped by period-end market value; profit is net income attributable to the parent, including loss-making companies. 2026 figures use the Nov. 2 close and trailing four quarters through Q2 2026; historical data excludes delisted companies. S&P 500 figure from Capital Group, as of June 30, 2026. Venture market from KPMG Venture Pulse Q3 2026. This article is not investment advice.
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About VENTURE+
VENTURE+ specializes in SaaS and AI investments, offering more than just funding. We provide startups with strategic guidance, corporate partnerships, and capital market planning. We aim to be the "Best Co-Founding Partner" bridging startups, venture capital, and industry leaders in long-term collaboration.
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