TAM

Definition

Total Addressable Market -- the theoretical maximum revenue if you sold your product to every possible customer on Earth, including people who don't want it, can't afford it, and live in places without internet. It's the biggest number in every pitch deck and the most fictional.

Example Usage

"Our TAM is $47 billion, which we calculated by multiplying the world population by a number we made up and presenting it in a font large enough to discourage questions."

Related Terms

Intermediate

stack ranking

The internal process VCs use to rank portfolio companies or investment opportunities from best to worst. A forced ranking system that ensures someone always gets picked last for dodgeball.

🚀 Startup / VC

Beginner

logo collecting

When a startup prioritizes acquiring recognizable brand-name customers purely for credibility, even if those deals are unprofitable or unsustainable. It's the corporate equivalent of name-dropping at parties.

🚀 Startup / VC

Intermediate

pro forma

Financial projections showing what a company's metrics would look like under hypothetical conditions or future scenarios. Latin for 'as a matter of form,' startup-ese for 'this is the fantasy we're selling investors.'

🚀 Startup / VC

Advanced

spray and delay

A strategy where investors make many small bets, then heavily support only the winners in subsequent rounds. The venture capital version of throwing spaghetti at the wall, then only cooking the pieces that stuck.

🚀 Startup / VC

Beginner

founder market fit

The degree to which a founder's background, skills, and experience align with the problem they're trying to solve. VCs love backing someone who's lived the pain they're addressing.

🚀 Startup / VC

Intermediate

follow-on investment

Additional money invested in a portfolio company after the initial round—either because things are going great and you want more ownership, or things are terrible and you're protecting your original investment. Hope and desperation look surprisingly similar.

🚀 Startup / VC

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lyfao

laughing your f**king ass off...