We build in the marketscapital |
Institutional capital needs billion-dollar markets.
We don't. Not anymore.
It takes a team of 01234567890123456789 engineers 01234567890123456789 months to ship a product.
So we build where the capital isn't. Bespoke products for markets others can't justify.
If it's boring to a fund and obvious to the customer, it's interesting to us.
Why Theorum Exists
The best way to improve outcomes is to increase the number of ways you can win. For a long time, the highest-leverage move was betting everything on a single startup. That made sense when building software was slow, expensive, and required scale early. We think that world is over. AI-driven development changed the math. Small teams can now build and ship real products quickly. Instead of one big swing, a portfolio of focused bets has higher expected value. Due to . Markets that were once too small to justify the effort are suddenly viable. We believe it's still early.
Why These Markets Exist
Venture capital needs billion-dollar outcomes. It's just math. A market can't return a large fund, so it doesn't get attention. The result is predictable: the market stays broken, participants limp along with workarounds, and everyone moves on to the next multi-billion dollar enterprise one-size fits all obsession.
What Actually Changed
The economics of building software inverted. What took millions of dollars and a year in 2020 now costs a fraction of that and ships in maybe a few months. In addition to that, . Markets that never made sense under traditional venture economics can now support profitable, durable businesses. We're not smarter than anyone else. We just know to look where others aren't.
The Customers
We think about the people who've been hearing "software is eating the world" for twenty years while running serious businesses on Excel, email, and fax machines. They're not unsophisticated but they certainly can become far more efficient and capable. There's something strange about how much value sits in plain sight simply because it doesn't fit a fund model.
How We Think About It
We don't optimize for exits. We optimize for building things that work and make money. That sounds simple, but its not the normal. We can go after a market. We can build to in revenue and stop. We can own businesses long-term instead of flipping them and share the returns amongst our small team. No one is forcing us to grow past what actually makes sense. To us, this is more attractive and efficient than a portfolio of moonshots.
The Actual Advantage
When you're the first real software in a market you need to be competent and fast. Show up. Build something that works. Keep improving it. The incumbents are and no one is probably looking.
Why This Works for Us
A small team. . No obligation or pressure to allocate so you can deploy your LPs capital. No pressure to chase markets we don't understand. If it's boring to a fund and obvious to the customer, it's interesting to us.
What We're Betting On
We think the next decade creates more software businesses than the last decade created unicorns. Most won't make headlines. That's fine. We'd rather build a handful of profitable companies in markets that genuinely need them than chase a single moonshot in a market that's already crowded.
That's the thesis. The rest is execution.
See something we don't? Let's talk.
If you have deep insight into a market that's been ignored, a workflow that's broken, or a niche that's waiting to be built, we want to hear from you.
Get in touch