TAM in Pitch Decks | One of the most overlooked parts of a pitch deck is the market slide (specifically the total addressable market). Most founders, knowing that investors are looking for outsized returns, try to find the largest possible TAM so that they can claim they are operating in a $1T+ market. | What many founders fail to recognize is that this is a missed opportunity to pick a number that is strategically selected to highlight your strategic thinking, market entry strategy and unique value propositions. | So, let’s talk about how you can pick the right TAM to present to investors. | | Fact-based news without bias awaits. Make 1440 your choice today. | Overwhelmed by biased news? Cut through the clutter and get straight facts with your daily 1440 digest. From politics to sports, join millions who start their day informed. | Sign up now! |
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| | The best advice I can give for picking your TAM is always to work your way up, not to pick a random number you find online. Most founders search for large market size figures and then try to add a few together to justify a large TAM. Instead, focus on how much money you can make from one customer, then figure out how many possible customers you acquire; this is how you present a number that investors can believe. When picking how many customers you can reach, start by focusing on those customers who will need your product the most; that figure is your short-term market size. Then, look at how many people don’t need your product but are likely to convert in the future; this is your larger TAM. Thinking about it in this way allows you to explain to investors how you are going to attract the users you need to hit the different market sizes that you need.
| Using these steps allows you to show that you have thought through your market entry strategy, that you understand the types of customers who are going to be using your product, and that you understand what you need to do to attract different types of customers. | | How do you pick your TAM | | | In partnership with |  |
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| Big investors are buying this “unlisted” stock | | When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso. | Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market. | And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history. | Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO. | Invest for $2.90/Share | Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. |
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