A 2020 version of this might be "why there aren't more Teslas." Elon's might be a rare cat, but he's probably not one in eight billion. At this point, changing

A 2020 version of this might be "why there aren't more Teslas." Elon's might be a rare cat, but he's probably not one in eight billion. At this point, changing the world with a new FB or Google is more about dislodging monopolies then it is about innovation. Meanwhile, a promising startup in this space would find it quite easy to get big/late stage funding because of acquisitions. A "tesla" will have a hard time getting funded for precisely the reasons laid out by paul. The difference though, is that manufacturing is actually capital intensive. Google & Facebook needed investors to cover rent and salaries for a few years. Making lots of bets isn't as viable. You do actually need to make good bets. Meanwhile, in the google/fb space it is now more true that acquisitions and monopoly dynamics are a major hindrance to "more googles." Investors certainly aren't shy to make these investments. Investments in Teslas are depressed by conservativism and ability to pick winners.