Venture capital is a very specific asset class designed for a very specific purpose: generating exceptionally high returns for the limited partners who provide the capital to the VC firms to invest on their behalf. Limited partners require these high returns from venture to complement the rest of their portfolio, which is spread across lower risk investments. Thus, VCs are under pressure to find the moonshots that have the potential to drive these outsized returns.

You have to be in exceptional shape for this to be a viable path. The total addressable market (TAM) you aim for has to be enormous in order to capture a chunk of the market that is still meaningfully large enough for the VC math to pencil. READ MORE