> John Carmack's success is due to id Software incubated at Softdisk. The reality of that success, at least in the beginning, was an already established stream of revenue, a ready assembled team, and proper leadership. The brilliance and innovation of Carmack came later. They had day jobs, revenue, and product/market fit already established before spinning out of Softdisk to launch id. That isn't enough to account for the super stellar success they would later enjoy, but it fully explains launching a successful business. There isn't any magic or secret sauce there.

The point is that they could have all this, but without them capitalizing on the incredible wave of rising hardware performance we wouldn't be talking about them now. Big opportunities arise when the situation is dynamic.

> > The problem with this way of thinking is that existing markets are probably efficient enough > Oh, that's certainly not true. The challenge there is the expertise to see the current dysfunction versus the risk of solving for it.

Notice that I didn't state that there is no dysfunction, only that there are no easy opportunities to exploit it. The reality is that the world is full of dysfunctions but they persist not because people are lazy to fix them, but because our systems are stuck in the bad equilibria which are hard to get out of. Take healthcare for example. To anyone who went to a doctor even once the dysfunction is obvious. The system can probably be made 10x more efficient with fairly simple tweaks! But good luck implementing them - you will be stuck in the molasses created by regulation, incumbents and simple inertia of people unwilling to experiment with their health.