smaller destination that VM

[poichr]

New to Veeam and 1rst post,

I am preparing to backup a Hyper-V VM but my local bucket is smaller than my VM size.
My VM size is 1.8 Tb but as 300 Gb of data with a 2–3 Gigs increase a month.

For now my destination Bucket is only 1 TB, any chance that it would work
does my VM size dictate minimum size for my destination or that data does?

[Gostev]

With Veeam, only actual data matters. Plus it will be compressed, about 2x on average with the default compression level (which you can increase for more space savings).