Hey friends 👋
Ever see a startup pitch with a “$120 billion TAM” and think... wait, what? This week we’re diving deep into Total Addressable Market calculations and why most founders get them hilariously wrong.
We break down the difference between top-down TAMs (”if we just get 1% of this massive market...”) and bottom-up approaches that actually mean something. From college fridge rentals claiming 50% market capture to legal platforms confusing their customers’ TAM with their own, we rate some truly wild examples.
Key insight: Your TAM should be the market you’re actually playing in, not your customer’s market. That DIY legal platform? Your TAM isn’t the entire legal services market - it’s what freelancers spend on legal tools.
We also share tactical tips for building credible, data-driven TAMs that impress investors and help you understand your real growth potential.
Plus: Cam’s history of the Boston metro, and JDM’s epic Reno road trip disaster involving flat tires, beef jerky dinners, and a Starbucks with literally zero chairs. Because sometimes startup life mirrors your TAM calculations… messier than expected.
—Cameron and JDM
