1 min read

Link: Investors won't give you the real reason they are passing on your startup

The importance of addressable market One proxy for power law, is the size of your addressable market: It’s crucial to have a clear understanding of your Total Addressable Market (TAM) and to be able to articulate this to investors in a compelling way. Your TAM represents the total revenue opportunity available to your startup if you were to capture 100% of your target market. It’s a theoretical ceiling on your potential growth, and it’s a key metric that VCs use to evaluate the potential scale of your business. When presenting your TAM to investors, be realistic and to back up your estimates with data and research. VCs are highly skilled at evaluating market potential, and they’ll quickly see through any attempts to inflate or exaggerate your market size. Instead, focus on presenting a clear and compelling case for why your market is attractive, how you plan to capture a significant share of it, and what unique advantages your startup brings to the table. #

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.