Not really: some niches get competed out as a side-effect of addressing a large market.
VC almost exclusively invests in businesses that have a large TAM (Total Addressable Market) and a VC is not invested in a business that has a small, niche market. The VC model is invest x millions, aim for one win in the billions that gets all the return to the fund, and then cut the losses for all the other fund’s investments that didn’t win big (wind-up or sell - recover the VCs preferential money and don’t give a shit if common share holders like founders get $0).
robocat|3 years ago
VC almost exclusively invests in businesses that have a large TAM (Total Addressable Market) and a VC is not invested in a business that has a small, niche market. The VC model is invest x millions, aim for one win in the billions that gets all the return to the fund, and then cut the losses for all the other fund’s investments that didn’t win big (wind-up or sell - recover the VCs preferential money and don’t give a shit if common share holders like founders get $0).