“we're like very comfortable backing entrepreneurs that are going after Niche markets where you know if they really hit a home run and they capture you know 30 40% market share they're still not going to necessarily build a billion doll company in that but they can build a fantastic very profitable very healthy company”

Niche markets dodge the capital arms race

Huge markets attract competitors with infinite capital who burn money just to bleed you (the Uber/Lyft dynamic). Niche markets are too small to attract that war chest, letting a disciplined operator capture 30-40% share and build a great business without ever entering a funding race.