> VC's have a very strong preference for a large number of small customers over a small number of large customers, and why.

This is intriguing and I would appreciate if possible to get any sources to read up on this?

Anyone should prefer lots of customers to a few key ones. The latter have more leverage. They also make one’s metrics risky, as a single defection can swing the firm from profitable to barely eking by.

> Anyone should prefer lots of customers to a few key ones.

I think the caveat/variable is "all else being equal or close to equal."

If having 10 customers will net you $10 total per month, and having one large customer will net you $100 per month, it is really hard to justify going with the $10 customers. But if those 10 customers will net you $10 EACH per month, then the 10customers is a better situation.

Yeah but if 1 of your customers offers to prepaid for 10 years of service at the same price you wouldn't turn that away. Allowing you to maintain your other customers. Apple's pre-order of 3nm will get them priority as they ordered it before it was an option. (see Kickstarter)

As I said, "all else being equal or close to equal."

But it's not and it has been documented. Apple paid for the 3nm process years before TSMC had the fab ready. I'll bet that the moment a new process is available that Apple will invest in it as well.

At no point did I make any argument about Apple.

Makes your public metrics look better (ie "we have over 500+ customers!!!!") and also demonstrates (in theory) a more durable product.

When people see small number of large customers, the implication is you are basically just running an outsourced dev/consultant/staff aug shop. Less product vision and ability to "scale".

“too many eggs in one basket”?

Especially for a new untested company no customer is sure they actually need yet