Increasing returns, a distinctive feature in the digital economy, considerably lower the risks of marketing and distribution: thanks to them, tech companies don’t need to finance marginal growth like in the traditional economy. Yet while increasing returns spare companies part of the marketing effort, they also ignite two new kinds of risks: the infrastructure has to bear up under a rapidly scaling business, and some technology has to be developed to nurture increasing returns, especially machine-learning algorithms. Hence tech companies encounter a higher level of technological risk at later stages than did companies in the traditional economy…