Tomasz Tunguz (Personal Blog/Venture Capital Publication) · 2024-04-17 · 778d

Rethinking Market Size Assessment in Early-Stage Venture Investment

Venture capitalist Tomasz Tunguz challenges the traditional approach of evaluating startups based on existing market size, using Shopify's rejection by early investors as a case study. He argues that successful founders don't enter large markets—they create them by changing market dynamics and generating demand through innovative products and risk-taking.

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Metrics in this report

Shopify Valuation

90$B

current

e-commerce platform category-defining company