Rethinking Market Potential for Startups

Jahanvi Sardana, a partner at Index Ventures, has an important message for startup founders who are preoccupied with identifying their Total Addressable Market (TAM). She points out that many successful startups have come from markets that didn’t even exist when they started. This suggests that focusing too heavily on market size can be misleading and may prevent founders from seeing new opportunities that are not yet defined.
Instead of stressing over TAM, Sardana encourages entrepreneurs to concentrate on building their product or service and understanding their customers' needs. By being adaptable and innovative, founders can create new markets and demand, rather than limiting themselves to existing ones. This approach can lead to unexpected successes and growth in areas that are currently uncharted.