THE WEEKLY MFE

This summer, I had the chance to explore the venture capital world through a fellowship. It became less about finding the next unicorn and more about learning how early-stage startups tell their stories and how investors read between the lines.

I spent weeks studying pitch decks, noticing the patterns founders use to communicate vision, traction, and market potential. I learned how VCs evaluate opportunities, how they search for evidence of scalability, speed, and massive addressable markets.

I also attended startup events and spoke with several founders, hearing directly about their journeys: the pivots, the experiments, and the way they thought about growth.

Somewhere in the middle of all of that, I began noticing something unexpected. Some of the most memorable companies were not designed to scale at all.

They were small by design, deeply rooted in their communities or niches, and often dismissed as too limited for venture funding.

But they were profitable, resilient, and loved. They were unscalable, and quietly, they were thriving.

What Unscalable Really Means

Unscalable companies are not trying to become category-defining giants. They do not chase blitzscaling or optimize every decision around rapid expansion.

Instead, they grow slowly, intentionally, and within natural constraints like geography, expertise, or human attention. They might rely on craftsmanship, personal relationships, or specialized knowledge.

Their value comes not from how many people they can reach, but from how deeply they serve the few they do.

In venture circles, these are often labeled lifestyle businesses. But in reality, many had something VCs often overlook: strong unit economics, loyal customers, and a clear sense of purpose.

What They Taught Me

Seeing these companies through a venture lens initially made them seem too small.

Looking at them simply as businesses revealed how powerful they were:

Aligned incentives: Without investor pressure, founders could prioritize quality over speed.

Durable economics: Instead of burning cash, they focused on profitability from day one.

Deep loyalty: Many built small but passionate communities by putting trust before growth.

They reminded me that not every great company has to be venture-backable. Some of the healthiest and happiest founders were the ones building on their own terms, even if their market size would never impress a VC.

Why They Still Matter

Unscalable companies may not fit the venture model, but they play a vital role in the larger entrepreneurial ecosystem.

They support local economies, explore niche markets, and often become acquisition targets later after proving their model works.

More importantly, they expand the definition of success. They show that entrepreneurship does not have to be about becoming the biggest. It can also be about becoming enough.

A Final Thought

This fellowship gave me a front-row seat to how VCs evaluate startups.

It also gave me something more unexpected: a deep respect for the founders who build quietly, sustainably, and intentionally, the ones who may never be on magazine covers but are still building something that matters.

Not every company needs to be scalable.

Some are beautiful precisely because they are not.