Graham has introduced some bias into the experiment by hand-picking companies to fund. The teams that he funded were the ones who came to him with the ideas that he liked best. On the other hand, if these guys are succeeding as well as he suggests it must mean that the competition is very weak. Who are the competitors? Older programmers working in bureaucracies at larger companies, which have strong brands and near-infinite capital. So basically what Graham is proving is that these folks are incredibly unproductive and their aggregate work product is almost worthless.