Market Size: The Bigger, The Better

Good Morning Readers.

You must have heard about “Market Size” or “How big is the market”.

Many times investor simply says “This is not investable business”, one of the reason as the market is not big enough.

Do you know why?

Because investors aren’t looking for small wins. They want companies that can capture massive markets because that’s where exponential returns happen.

What Investors Look For:

• Is your target market worth billions of dollars?

• Is your market growing rapidly?

• Is your startup positioned to dominate a large segment of that market?

If you’re building a B2B SaaS tool for restaurants, a small local market won’t excite investors. But if your product can scale globally and tap into a $500B+ restaurant technology market, now we’re talking

• Clearly define your Total Addressable Market (TAM) and show how you can capture a significant share.

• Use data and credible sources to back your numbers.

Scalability: Can You Grow Without Breaking?

A startup that grows 10x in revenue but requires 10x the team and resources isn’t scalable.

Investors look for business models that can scale efficiently—meaning revenue grows faster than costs.

• Can your business grow without requiring massive capital or resources?

• Can you acquire customers cost-effectively and keep them?

• Does your business have strong unit economics (high margins, low churn)?

Example:

Airbnb scaled from a small startup to a global giant without owning a single hotel. Their platform-driven business model allowed them to scale fast without huge infrastructure costs.

Action Tip:

• Highlight automation, platform leverage, or network effects that make your business scalable. Start asking how you can apply these to your business.

• Define a growth strategy that doesn’t require excessive hiring or overhead.

YOUTUBE TREASURE

👉My Pick: How to build a business that runs itself