Around the 17th minutes, Naval Ravikant said something interesting

‘if you go to someone and say you're going to build something small and medium size, you're unfundable.
because in game theory terms, it's called Keynesian beauty contest [..]’

the problem Angels have if you're not going for something big, they will not invest in you because they know VC is looking for big funds and only wants to go for big things. VC don't want to invest in you because Private Equity is only looking for big things.

It ripples all the way back in the chain.