I'm not sure this is the case here, but one thing I notice is that competitive environments (i.e. non natural monopoly businesses) do catch up with businesses e

I'm not sure this is the case here, but one thing I notice is that competitive environments (i.e. non natural monopoly businesses) do catch up with businesses eventually. I don't think this should prevent VCs from investing (esp early stage), as great success can be achieved when capturing a market - but in the long run pricing pressures do force the business towards tighter margins.