Ok, I obviously know that there's a place for niched startups in the ecosystem.
But think about this guy's potential Total Addressable Market. How many videos on YouTube are personal confessionals? Let's estimate one in every two thousand, so 0.05% of their total. Let's assume this guy can double the size of that market through his concentration on the subject. 0.1% of YouTube's realized market value is $1.65 Million.
Sometimes people should just use their head when analyzing a market instead of their heart. Pick a market that has reasonable growth potential. I think a lot of investors get hosed by reasonable entrepreneurs with unreasonable market expectations.
If I'm remembering correctly, relentless, irrational optimism is a personality characteristic that comes out again and again in psychological studies of successful entrepreneurs.
But think about this guy's potential Total Addressable Market. How many videos on YouTube are personal confessionals? Let's estimate one in every two thousand, so 0.05% of their total. Let's assume this guy can double the size of that market through his concentration on the subject. 0.1% of YouTube's realized market value is $1.65 Million.
Sometimes people should just use their head when analyzing a market instead of their heart. Pick a market that has reasonable growth potential. I think a lot of investors get hosed by reasonable entrepreneurs with unreasonable market expectations.