One of the first questions most venture capitalists ask would-be entrepreneurs is about the size of the target market. Selling into a niche market is generally frowned upon.
That is, of course, unless you're Kleiner Perkins and you want to throw $100 million at startups focused on the BOOMING iPhone applications market. With all of 10 million iPhones projected to be sold by the end of 2008, it's unclear how this is a good idea.
Perhaps the iPhone user demographics are such that an overwhelming majority want to buy applications, but I doubt it. Look at the Mac market. I'm a rabid Mac fan, but if I'm starting an applications company, I'm not going to go public on a Mac-only platform. … Read more