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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Index's Shardul Shah on Why Market Size is a Trap | Biggest Lessons on Pricing from Leading Rounds in Wiz & Datadog | Why Benchmarks & Averages in VC are BS | How Index Makes Decisions and Why Growth & Early are the Same Investing Style

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Embrace Discomfort for Extraordinary Gains

Comfort is not the goal when it comes to investing; the focus should be on embracing discomfort and taking calculated risks. Rather than seeking average returns, aim for outlier investments that can yield disproportionate results. It's crucial to differentiate between various types of risks—execution, market timing, and market sizing—and assess your willingness to engage with them. Be wary of Total Addressable Market (TAM) estimates, as they can mislead. Successful founders recognize and cultivate market opportunities, often exceeding initial TAM projections.

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