Startup & VC Jargon · Managing Director level

"Total addressable market"

"Total addressable market" (TAM) is an estimate of the maximum revenue a company could earn if it captured every possible customer in its target market.

Say this instead: total market size

How "Total addressable market" shows up at work

The number that makes the investor deck look exciting, calculated by multiplying something large by something else large. Founders cite it to signal opportunity; operators quietly discount it when planning actual budgets.

Buzzword

Our total addressable market is $50 billion, and we're just getting started.

Plain English

The total market size is $50 billion, and we've barely entered it.

Corporate Rank: Managing Director · Category: Startup & VC Jargon

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