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The Startup Velocity Question: TAM Drives Fundability

Posted on Tuesday, Jul 23rd 2024

More often than not, an honest Total Available Market (TAM) analysis yields small or medium sized markets. This could range from $50M, $100M, $200M to $500M.

If you have such a situation, you have to take a careful look at your funding strategy.

Instead of playing the Unicorn game, you have to play for an early Exit.

Key Takeaways:

  • Honest TAM analysis often reveals smaller markets than initially estimated.
  • A smaller TAM requires a careful reassessment of funding strategy.
  • Companies with smaller TAMs should consider an early exit strategy.
  • Overestimating TAM can lead to unrealistic expectations.

My Question to You:

What is your realistic TAM estimate?

If you think you need help, consider 1-on-1 Private Consulting with me.  I will fix your TAM model in an hour. And I will derive your Funding and Exit strategies accordingly.

Photo Credit: 3D Animation Production Company from Pixabay

This segment is a part in the series : The Startup Velocity Question

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