This isn't entirely true. It's more that there isn't a place for startup companies that want to be the big guys right away (i.e. Coreupt, Klint, ect). Small companies that stay smaller, will do fine, obviously they have to work harder and can't expand beyond their limits, but if they're smart they'll do OK. Look at companies like Surface, ON3P, Moment, Icelandic, ect. They're all doing OK, expanding slowly, building core teams with the occasional mid to mid/high level names, a small amount of retail stores to work with, direct sales from the shop. They're doing fine because they didn't try and start at the top.