Total addressable market: what is it, and why does it matter?

The total addressable market, or TAM, is important – but it’s something investors and founders often get wrong. Investors want to see it because it tells them just how big a business can grow, and founders are understandably keen to make it seem as big as possible.

As Octopus Ventures investor, Edward Keelan, explains, calculating your TAM can tell you a lot about your start up, highlight directions for growth – and bolster investor confidence by proving that you know your market.