On the other hand, there was recently and article in Forbes about a tech billionaire who saw this pattern (small tech companies with one main successful product that were then pouring money into other speculative as-yet unsuccessful products) and built a fortune doing the exact opposite: he'd buy the companies, basically stop all investment in new products (meaning lay most people off and outsource the maintenance to cheaper countries) and milk the maintenance revenue stream until it basically died. I think of it as "the world's most depressing business model", but it was definitely highly profitable.
https://www.forbes.com/sites/nathanvardi/2018/11/19/how-a-my...