@icedquinn @newt yes they do. And when they don't, it's largely due to patents (government) and regulation (government) to create barrier to entry.

There's actually a market to create companies for the purpose of looking like a threat, so they can be bought up. Then the talented people in those companies leave and join newer companies, and the "stardust" fades.

The most fucked industries are the least competitive ones with the most regulation and government intervention: healthcare, education, defense contracting, insurance, banking. You practically cannot start a business in these industries to eat their lunch, because of the amount of lawyers you would need.