How to Calculate TAM, SAM, and SOM for Startup Analysis

How to Calculate TAM, SAM, and SOM for Startup Analysis

Imagine telling an investor that your startup operates in a $50 billion industry. It sounds impressive, but there is an obvious problem: your company probably cannot serve every person or business spending money in that industry. Some customers live outside your target geography, some need features you do not offer, and others may already be … Read more

Why Market Size Matters in Venture Capital Decisions

Why Market Size Matters in Venture Capital Decisions

Imagine two startups with equally talented founders and equally impressive products. The first sells software to a niche industry worth roughly $100 million worldwide. The second solves a similar problem in a market that could eventually be worth tens of billions of dollars. Even if both companies perform well, venture capital investors may view them … Read more