For many newbie founders, determining the size of the market they hope to compete in is one of their biggest challenges.
I didn’t launch a successful startup, but I participated in the writing of several pitch decks. Each time, the collective anxiety of the team increased when it came to calculating the TAM.
It was always the last slide we worked on.
For most products and services, TAM is billed in nine or more figures, but when you’re sitting around a kitchen table eating a cold pizza while planning to disrupt a billion-dollar market, these numbers can create a lot of cognitive dissonance.
TechCrunch+ full articles are only available to members
Use discount code TCPLUROUNDUP to save 20% on a one or two year subscription
Calculating TAM, SAM, and SOM sounds like an existential exercise, but there’s no need to dread it “if you approach market size methodically,” says Marjorie Radlo-Zandi, a seasoned investor and entrepreneur.
In her latest post on TC+, she outlined the steps needed to capture these key metrics that “will show potential investors how they can benefit from investing in your business and put you in the best possible position to achieve your goals.”
This article also explains how to hire and pay for custom market research, the best people to ask for advice, and the importance of only using credible sources. And don’t worry about those staggering billion-dollar numbers.
“Only worry if the number is small,” she says. “The TAM number gives investors a broad macro view of your company’s potential.”
Thanks for reading and have a nice weekend.
6 technologists explain how no-code tools are changing software development
We’ve been reporting on the rise of no-code/low-code software for years, but since the onset of the pandemic, it’s taken on new prominence.
Rapid digital transitions are occurring at a time when employees have become adept at working remotely and software developers are in greater demand than ever.
We interviewed six technologists to learn more about the impacts of no-code/low-code tools, technical debt reduction, and related topics:
- Patrick Jean, Technical Director, OutSystems
- Deb Gildersleeve, DSI, Quickbase
- Zoe Clelland, Vice President of Product and Experience, Nintex
- Bruno Vieira Costa, Founder and CEO, Abstra
- David Hsu, Founder and CEO, Retool
- Trisha Kothari, Co-Founder and CEO, Unit21
Intel’s plan to release Mobileye brings welcome thermal control to IPO
When Intel bought Mobileye in 2017, the chipmaker paid around $15.3 billion, or 43 times Mobileye’s revenue the previous year.
This year, Mobileye is poised to return to the public markets as Intel seeks to spin it off, but the IPO market is so frozen that all eyes are on how well the company’s reception is. computer vision company.
“There may be less of a hype premium attached to Mobileye when it’s listed. Yet the company has good growth and good operating income tied to a very, very high tech product, so there’s good reason to expect society to have material value.
Dear Sophie: How long does it take to get international parole for entrepreneurs?
My co-founder and I have E-2 status. We need to find a visa option fast because a venture capital investment will dilute our equity and we will no longer be eligible for the E-2.
We are considering international parole for entrepreneurs as an option as we would easily qualify depending on the investment we expect, but are concerned about the timing.
I know IEP is a new option; how long will that take ? Can it be accelerated? Should we consider alternatives?
Selling to developers is no longer a safe path to insane valuation multiples
Companies like GitLab, Hashicorp, and Samsara that produce developer tools have seen multiples skyrocket in recent years, but those numbers are coming down to earth.
On Twitter, Boldstart Ventures partner Ed Sim noted that Gitlab’s valuation fell from $15 billion to $5.5 billion and Hashicorp fell from $14 billion to $6.7 billion. .
This prompted Alex Wilhelm to take a closer look at these “developer-focused” companies.
“You would think that with venture capital piling up in the tech business model category and a number of recent IPOs, the market for this job would be hotter than ever.
Hire a Writer and Lawyer Before Publishing a Cryptocurrency White Paper
Writing a white paper used to be an academic pursuit, but for crypto startups, these papers are written with investors in mind.
Potential project proponents want to understand a company’s underlying technology, but today’s white paper also needs a transparent product roadmap, an overview of tokenomics, and details about how the product will be used.
John Biggs interviewed a slew of crypto executives to learn more about what investors are looking for in white papers and how founders should approach their writing.
Are we entering an NFT slowdown?
In early February, VaynerMedia CEO Gary Veynerchuk told CNBC, “I post content every week saying 98% of [NFT] projects go to zero. Most of the behavior I see in buying NFT reminds me of how people used to buy Beanie Babies.
On February 23, a scheduled NFT auction at Sotheby’s was canceled shortly before its scheduled start after the consignee posted on Twitter, “nvm, decided to hodl.”
Anecdotally, I see far less discussion of non-fungible tokens in my Twitter timeline, and that includes supporters and detractors alike.
Anna Heim and Alex Wilhelm found several data points suggesting “that the NFT market is slowing down on a number of axes, indicating, at a minimum, that hot sector growth has stalled.”