Q: What size target markets do VCs expect?
A: VCs require large markets. Many want a market that is large enough, generally over $1 Billion annually, so they can get a 10X return within 3 to, at most, 5 years with less than a 10% market share. Large markets have the advantages of more potential early adopters and more segments to try if the initial approach is not as successful as hoped. Businesses targeted to smaller markets can work well for angel investors.