π± TAM for Seed Stage is Overrated β
May 12, 2022 β’ #One of my favorite ideas from my friend Sandy Kory is that βgreat product-led companies create their own TAMβ. His latest post is on this topic, that worrying about deep TAM analysis is a distraction for early companies:
Is TAM really that bad? The problem is that at the seed stage, looking for TAM will push a startup towards existing markets & existing budgets. This can take a startup away from finding the best early adopters for a disruptive product. It can also stifle the long-term orientation needed for startup greatness.
The beauty of software startups is their potential for alchemy over a long time horizon. TAM is an output of a disruptive software startup, not an input.
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