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Index Ventures’ Jahanvi Sardana shares the truth about TAM and what founders should focus on instead


Early-stage founders just can’t get away from TAM — the concept of having a total addressable market for their startup to disrupt and conquer. But Index

But Index Ventures partner Jahanvi Sardana has a reminder for all those founders worried about finding TAM for their product or service: many startups have emerged from markets that, at the time, were essentially nonexistent. “It’s OK to create that slide and talk about the math behind your TAM,” Sardana said, though she added that sometimes investors get annoyed when founders rely too much on industry metrics rather than having their own unique insight. “The reality is Airbnb created a whole new inventory, which is now bigger than some of the largest hotel brands, and that led to a big change in behavior on how people travel,” she said, adding that marketplace TAMs are tricky.

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