(1/n) Most VCs (with me being the first in line) are often very wrong on the market size, i.e. we often underestimate it. While part of this is due to incorrect judgment on the depth of the pain point or future underlying growth of the target segment.... @Stellaris_VP

(2/n) ...IMO, this emanates mostly because we tend to box the company to a single segment and to a single product. A great example I was reading today was Veeva - we all know that it is the poster child of vertical SaaS...

(3/n) ...what some of us may not know is that Veeva was $29M in revenues in 2011, and had only one product - its flagship CRM. IN 2012 it launched Vault, for the clinical and research operations. Vault today is a much larger share of revenues compared to CRM.

(4/n) If the person writing the first check had evaluated it only as a CRM - they would have severely underestimated the potential.

(5/n) In SaaS companies, I have always seen that what one needs is a "reasonable sized" starting point - a wedge - a wedge that is characterized by a deep unsolved pain, and has the potential to take you beyond the earlier years...

(n/n) ...thereafter all you are betting on is entrepreneur's ability to continuously expand the product footprint, either to newer segments of the same product, or newer adjacent problems of the same segment. Those are hard to imagine, let alone quantify on Day Zero.