> VC's have a very strong preference for a large number of small customers over a small number of large customers, and why.
This is intriguing and I would appreciate if possible to get any sources to read up on this?
This is intriguing and I would appreciate if possible to get any sources to read up on this?
I think the caveat/variable is "all else being equal or close to equal."
If having 10 customers will net you $10 total per month, and having one large customer will net you $100 per month, it is really hard to justify going with the $10 customers. But if those 10 customers will net you $10 EACH per month, then the 10customers is a better situation.
When people see small number of large customers, the implication is you are basically just running an outsourced dev/consultant/staff aug shop. Less product vision and ability to "scale".
Especially for a new untested company no customer is sure they actually need yet