This especially applies to bootstrapped products, where the only recipient of the profits is probably you.<p>Micro-niche could mean only <i>ever</i> getting 1000 customers to pay you $30 a month. Even if you had a few thousand a month in expenses, your personal income will be higher than 99% of people who play the startup lotto.
When Stormpulse first launched we only covered hurricanes in the Atlantic and didn't have radar. That focus allowed us to create a product 10x better for that "narrow" concern (still possessed by millions) but made it insanely difficult (read: neigh impossible) to have good conversations with investors.
Dave, not sure whether you read HN; I have a question for you - I believe what you are describing are "feature" startups. Which of course are derided by everyone. Now you can always say we are going to be a product and then company by covering growing beyond niche. But lot of times people don't believe in your grand vision as it sounds BS. So how do you convince someone that you are going to grow beyond niche? Or niche is just the foot in the door of market?
This is cool to hear from investors. Attacking a niche is one of the easiest ways to get early traction. And the best time to go big is once you have a couple wins in the bag.