In fact, VCs’ biggest problem today isn’t finding which business will work and which won’t, but finding which business will scale and become massive.
Why we need an alternative to venture capital
Stefano Bernardi
22522
Very true. Wouldn’t call it a problem per se but it is indeed what we spend a lot of our time trying to figure out. It’s obviously harder for businesses that create or expand existing markets, which is what the most significant companies typically do. That’s why bottom up analysis (how many potential users x potential aov) tend to work better than top down (current market size of x). Great note!