WHEN IS A MARKET TOO SMALL FOR VCS?

Summary from the TLDR Founders newsletter

“Too small a market” from a VC's mouth doesn't mean your startup is worthless. It means it's not big enough to yield the 10-100x returns they need. Venture math demands massive exits to power their portfolios, so a $500M outcome might be too small for some big funds. Thus, the lesson: find investors aligned with your realistic exit potential. If you're not aiming for multi-billion scale, micro-VCs or angels might fit you better rather than chasing top-tier funds that pass due to market size constraints.