Small initial markets let startups achieve early dominance before expanding
Sumit Gajri · 20VC: Portfolio Construction, Optimising SPVs, Opportunity Investing "Between Rounds", Being Distribution-Centric Over Product-Centric and Capital Concentration Within Funds With Sumeet Gajri, Chief Strategy Officer @ Carta · Jan 17, 2020 · at 18:04
Sumit Gajri, Chief Strategy Officer at Carta, explains why early-stage investors should see small initial target markets as an advantage when paired with a founder's clear expansion vision.
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“Where it doesn't matter is where, you know, you have a company like Carta where, yeah, the initial market size is small, but that's actually a good feature of this because it means that you can dominate that small market very early, and when finders have clarity and vision around all the other possibilities that lie ahead of them, if they're able to dominate this initial market, it makes it possible to then buy into the idea that there's a larger market out there.”
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