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How small a niche would be exciting for LPs?

Considering our extensive experience and connections in the blockchain industry, we are currently exploring the idea of identifying a specific metric to prioritize. In this regard, we are contemplating the potential of a particular niche. Given our background in the media sector, we possess a network, a proven track record, and reputable credentials, and have successfully nurtured and accelerated a media company. Moreover, we possess financial and user data that can be verified. Therefore, we are contemplating whether concentrating on investing in crypto media startups is too limited in scope for a fund.
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In a recent survey of limited partners, only 17% were interested in generalist VC funds. 83% of limited partners prefer specialist VC funds. The specialization is normally in an industry, such as healthcare, and also potentially a sector, such as precision medicine.

The industry and the sector chosen by a manger to focus on has to (1) have enough dealflow to find top companies and (2) have enough potential to generate venture returns, which means that any one investment can have a 20x+ return on investment.

Media is not considered an industry with venture returns by both GPs and LPs. 

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