TAM Metric

Noun · Startup & VC

Definitions

  1. The total addressable market figure used to estimate the full revenue opportunity if a company could serve all plausible demand in its category. Because TAM can be stretched beyond reality, its usefulness depends on how credibly it is defined and segmented.

    In plain English: A measure of the total possible market size a company could theoretically serve.

    Example: "The TAM metric looked impressive, but investors wanted to know how much of it was realistically reachable soon."

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