Yes, there are lots of small markets where you can make good money. No, don't expect large VC funds to be interested. http://techcrunch.com/2014/11/23/requiem-for-a-unicorn/ …
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But the notion that "Not Every Market is Winner Take All" is wrong, almost by definition. That's a symptom of incomplete market segmentation
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To clarify: "winner take all" = power-law distributed outcomes. Not necessarily that "there can be only one."
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