Okay, what he says sounds plausible - I guess consulting is an example of a business with linear "resource efficiency". But he doesn't explain the faster than linear resource efficiency case very well. The obvious answer is a case where you get x% more customers per unit time then your effort on your product produces x% more value. Okay, so how do VC's identify businesses that will have X% growth in the number of users? Inform please.

Also, just a pedantic gripe, but someone should really inform this guy of the meaning of exponential growth. His definition that an "exponentially" growing firm the next million nets more value than the previous million would also apply to quadratic growth.