Is the right way to read this that 56,000 growing companies are all competing for the same seed investment dollars, so investors really do hold all the cards?

Or is the right way to read this that growth does not correlate with investment?

I think it's the second one.  Growth does not correlate with investment, and many companies are growing and succeeding despite their lack of investment dollars. 

The ones that take investment do seem to have an easier time getting press.

But maybe it only seems that way.