What is TAM?

In the lingo of new venture development (whether in a startup or a corporate entrepreneurship endeavor), TAM refers to Total Addressable Market. Wikipedia defines TAM as follows:

"Total addressable market (TAM), or total available market, is the total market demand for a product or service,[2] calculated in annual revenue or unit sales if 100% of available market is achieved." - Wikipedia

TAM is important because it is a measurement of market size. A venture with a low TAM will not be attractive to investors. See this article about what makes a startup fundable to see how TAM and growth rate plays into that equation.

Was this article helpful?
2 out of 2 found this helpful

Comments

0 comments

Please sign in to leave a comment.

This website and all posts and content are intended for educational purposes only and for no other purposes including without limitation commercial purposes. Any other use must give proper attribution to the Martin Trust Center and is subject to certain legal rights contained in our license and terms of use. See full legal disclaimer HERE .
The content in this knowledgebase is subject to a non-exclusive license with share-alike restrictions and the terms of use of this site – which is available for your review HERE .

Have more questions?
Submit a request
Share it, if you like it.