I see what you mean, but I believe that's more so directed towards the massive scale businesses. Companies that get measured in billions and not millions.

At a smaller scale (the majority of business, but maybe not the majority of revenue), that existing wealth and power is often much smaller and eliminating competition is much less feasible.

Like a local coffee shop, for example. Or a small industry specific software company.

Maybe they matter less in the grand scheme, but they're still a big part of things.

But I do agree with the idea that VC subsidized services to then grip the market and wring them later seem counter productive to a "free market".