Gresham’s Law applied to Talent Markets makes it so that you are either growing (and attracting Good Talent) or decaying (and pushing Good Talent out).
Talent follows talent of a similar caliber, and when Good Talent is concentrated on a single geo area, money and opportunities gravitate towards that point as well.
This dynamic is self perpetuating – money and opportunities follow Talent, and more Talent follow the increased capital and opportunities. This can be better characterized as a loop, or more specifically, the Talent Loop.
The fastest growing products are better represented as a system of loops, not funnels. Loops are closed systems where the inputs through some process generates more of an output that can be reinvested in the input. There are growth loops that serve different value creation including new users, returning users, defensibility, or efficiency. - Reforge
Below is an example of a Talent Loop applied to a city.
Talent Loops have two characteristics: