Going for bigger clients is the prudent path.
Small clients require far more initial investments and the payoff will be much later.
We failed to raise money exactly because we had a bunch of small clients and not enough revenue. It was a prudent decision for the potential investors - but the main failure on our side was not to network enough with our current investors in order to get another friendly round of investment.
We had a competitor that was doing exactly the same thing (with worse metrics) that raised several millions a few months later, so it wasn't too far fetched.
VCs invest in a lot of baseless crap - sometimes the crap turns into gold and sometimes in order to be the chosen crap you need to know the right people.
We failed to raise money exactly because we had a bunch of small clients and not enough revenue. It was a prudent decision for the potential investors - but the main failure on our side was not to network enough with our current investors in order to get another friendly round of investment.
We had a competitor that was doing exactly the same thing (with worse metrics) that raised several millions a few months later, so it wasn't too far fetched.
VCs invest in a lot of baseless crap - sometimes the crap turns into gold and sometimes in order to be the chosen crap you need to know the right people.