For many aspiring founders, one of the biggest challenges is figuring out the size of the market they hope to compete in.
I didn’t run a successful startup, but I helped write a few presentations. Every time we had to calculate TAM, the collective anxiety of the team increased.
It was always the last slide we worked on.
For most products and services, TAM is represented by nine or more numbers, but if you’re eating cold pizza at the kitchen table planning to blow up a multi-billion dollar market, these numbers can cause a lot of cognitive dissonance.
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Calculating TAM, SAM and SOM sounds like an existential exercise, but don’t worry about it, says Marjorie Radlow-Zandi, a seasoned investor and entrepreneur, “if you systematically look at market size.”
In his latest post on TC+, he describes the steps he needs to take to get these key metrics to help “potential investors profit from investing in their business and position themselves in the best possible way to achieve their goals.”
This article also explains how to hire and pay for market research, how to ask people for advice, and the importance of using only reliable sources. And don’t worry about those dazzling billions of dollars.
“Just worry if the number is small,” she says. “The TAM number gives investors a general idea of your company’s potential at the macro level.”
Thanks for reading and have a great weekend.
Senior Editor gaming-updates+
6 technologists explain how no-code tools are changing software development
We’ve been reporting a rise in no-code/low-code software for years, but with the onset of the pandemic, it has taken on a new meaning.
Rapid digital transformation is taking place in an age where employees have learned to work remotely and software developers are in greater demand than ever.
We interviewed six technologists to learn more about the impact of no-code/little-code tools, reducing technical debt, and related topics:
- Patrick Jean, CTO, Outsystems
- Deb Gildersleeve, CIO, QuickBase
- Zoe Cleland, VP Product & Experience, Nintex
- Bruno Vieira Costa, founder and CEO of Abstra
- David Hsu, founder and CEO of Retool
- Trisha Kotari, co-founder and CEO of Unit21
Intel’s plan to free Mobileye brings long-awaited IPO control
When Intel bought Mobileye in 2017, the chipmaker paid almost $15.3 billion, 43 times Mobileye’s revenue last year.
Mobileye will return to the public markets this year as Intel looks to get rid of it, but the IPO market is so frozen that all eyes are on how well the computer vision company is doing.
“Mobileye may have a lower advertising surcharge associated with it if it is on the list. However, the company has a very, very high-tech product with good growth and earnings, so there is every reason to expect the company to materialize.”
Dear Sophie! How long does it take to get parole for an international entrepreneur?
My co-founder and I are E-2 status. We need to find a fast visa option as the VC investment will dilute our capital and we will no longer be able to qualify for the E-2.
We are considering Parole for International Entrepreneurs as an option as we can easily qualify depending on the expected investment, but we are concerned about the timing.
I know the IEP is new; How long will it take? Can it be accelerated? Should we consider alternatives?
— Founder of Fly Flying
Selling to developers is no longer a surefire way to drive score multipliers crazy
Developer tool vendors such as GitLab, Hashicorp, and Samsara have seen multifaceted growth in recent years, but those numbers are back to zero.
On Twitter, Ed Sim, a partner at Boldstart Ventures, noted that GitLab’s valuation had fallen from $15 billion to $5.5 billion, while the value of Hashicorp had fallen from $14 billion to $6.7 billion.
This prompted Alex Wilhelm to take a closer look at these developer-focused companies.
“You can imagine that the market for this kind of work will be hotter than ever, with venture capital accumulating in the technology business model category and numerous recent IPOs. and still.”
Hire a Writer and Lawyer Before Launching a Cryptocurrency White Paper
Writing white papers used to be an academic exercise, but these white papers for crypto startups have been designed with investors in mind.
Potential backers of the project want to understand the company’s underlying technology, but today’s white paper also requires a transparent product roadmap, an overview of tokenomics, and details on how proceeds will be used.
John Biggs interviewed several crypto executives to find out what investors are looking for in white papers and how founders should write them.
Are we entering an NFT recession?
In early February, VaynerMedia CEO Gary Vaynerchuk told CNBC, “Every week I post content that says 98% [NFT] Projects are coming to an end. A lot of the behavior I see in NFT purchases reminds me of people buying Beanie Babies.”
On February 23, a scheduled NFT auction at Sotheby’s was canceled shortly before it began after the sender tweeted: “Nvm decided to wait.”
Unsurprisingly, I see very little discussion of non-fungible tokens on my Twitter timeline, and that includes pros and cons.
Anna Heim and Alex Wilhelm found a number of data points that suggest “the NFT market is slowing on multiple axes, which at least indicates that growth in the hot zone has stalled.”