TAM (Total Addressable Market)

Beginner 🚀 Startup / VC

Definition

The total revenue opportunity for your market—a number your pitch deck inflates by roughly 500%.

Example Usage

Our TAM is $50B because we're going after every person who has ever needed scheduling software ever.

Origin

Business analysis terminology; became central to venture pitch decks and realistic market sizing.

Fun Fact

The most commonly cited TAM mistake is multiplying 'number of people' × 'annual spend,' ignoring competition entirely.

Source: Business strategy and venture capital terminology

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