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

This TechCrunch podcast features an interview with Index Ventures partner Jahanvi Sardana, who discusses the concept of Total Addressable Market (TAM) for startups. Sardana categorizes TAM into three buckets: known, emerging, and invisible markets, providing examples of each. She emphasizes the importance of understanding the customer and their needs over solely focusing on market size, highlighting that investors prioritize evaluating founders' vision and ambition as much as the market itself. The interview also touches upon the challenges of assessing TAM in marketplaces and the importance of considering how a product might unlock supply and change consumer behavior. The discussion includes audience questions regarding TAM slides in pitch decks and what makes a company stand out to investors.