Calculating TAM Is About Problem Size, Not Market Size

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The size of a market or Total Addressable Market (TAM) is almost always at the top of the list for what VCs are looking for when evaluating startups. Because so many startups fail, it’s essential that each investment has the potential for an exit that can return the fund. However, the primary method for calculating TAM of looking at existing industry data is often very inaccurate. ‘Bottom-Up’…