Sam Altman: Invest in Small, Rapidly Growing Markets

OpenAI CEO Sam Altman prefers investing in companies targeting small, rapidly growing markets. He states, "I prefer to invest in a company that's going after a small but rapidly growing market than a big but slow growing one." Here's the thing: Altman sees a huge market as a potential trap if its growth has stopped. A market that seems small now can quickly outgrow a large, slow-moving one. What's interesting is that growth creates momentum, making it easier for new companies to find customers. In contrast, slow-growing markets often require companies to fight for existing customers. This advice, given during a 2014 Stanford lecture, emphasizes that momentum matters more than current scale. It suggests founders should prioritize a market's growth rate over its present size. This insight can help anyone considering new opportunities, not just startup founders.