I think a better argument is VC are only willing to bet on small amount of innovation at a time. (However, the article is worth reading he does ask some interes

I think a better argument is VC are only willing to bet on small amount of innovation at a time. (However, the article is worth reading he does ask some interesting questions.) For example Zappos didn't innovate how you sell shoes. Others were already selling shoes online. They simply innovated how you treat the customer and your employees. Thats a small innovation that VCs are willing to bet on.