Articles by Jared Sleeper
- How to calculate your total addressable market and make a great TAM slide for investors
Jared argues that startups often include total addressable market (TAM) slides in their pitch decks as a formality without much thought. A more thoughtful TAM analysis can improve a startup's pitch and business decisions. There are three ways to calculate TAM: top-down using industry reports, bottom-up using early sales data, and value theory using buyer willingness to pay. Jared recommends the bottom-up or value theory approaches as they involve tangible data and assumptions about potential product market fit. A good TAM slide can show investors that a startup is targeting a large enough market to achieve venture-scale returns.