<Investors do not invest where there is no large market to be served.
There is no large, established market for LEO launches.

The market is not large, but like the market for yachts, it is quite lucrative. Someone who developed a reusable launch system could lower launch costs by an order of magnitude. They could charge half what the expendables charge, and still shovel money in with a pitchfork. Eventually of course, with competition, the launch prices would drop closer to actual launch costs, but there is a window of great profits that is not being overlooked in the private sector.

Beal could have made it work, had he invested the same money in other technologies. Other small companies and organizations are busting hump right now to get the job done. Some are credible, some are naive, some are just looney. But you know, with all my experience in this field, I wouldn't bet the farm on which company falls into which category. I'm going to post a list of links today to a bunch of these outfits.

...The technical risk for $1,000/LB launchers or whatever # is very, very high...

The technical risk has been evaluated primarily by NASA and large aerospace contractors who have a vested interest in using the most elaborate technologies to solve problems. There are ways to solve these problems much more easily and cheaply, and without resorting to "bizarre" ideas. No, I'm not going to tell you what they are. I'm trying to make a living here.