I think that this is correct. The barrier to entry for producing software is very low because in many cases, coding does not require any capital. It should be a

I think that this is correct. The barrier to entry for producing software is very low because in many cases, coding does not require any capital. It should be a highly competitive industry with many alternatives to choose from, but it's not; this is because of VCs. VCs use their capital and connections to create moats around their investments to make their industry unprofitable for all competitors.