In a recent discussion with TechCrunch, Jahanvi Sardana, a partner at Index Ventures, offered a fresh perspective for early-stage founders obsessed with identifying their Total Addressable Market (TAM). She emphasized that many groundbreaking startups have emerged from markets that were virtually nonexistent at their inception, challenging the conventional wisdom of focusing heavily on TAM.
Sardana pointed out that iconic companies like Google and Amazon created entirely new markets rather than fitting into pre-existing ones. This insight serves as a reminder that innovation often defies traditional market sizing, urging founders to prioritize product-market fit over rigid market calculations.
Instead of getting bogged down by TAM, Sardana advises entrepreneurs to focus on solving real problems and understanding customer needs deeply. She believes that a strong customer-centric approach can naturally lead to market expansion, even in areas initially perceived as niche or non-existent.
Reflecting on Index Ventures’ own journey, Sardana admitted that the firm passed on opportunities like Airbnb due to an overemphasis on TAM in the early days. This lesson underscores her call for founders to rethink their strategies and focus on creating value rather than chasing predefined market boundaries.
Her message is clear: true innovation reshapes markets. Founders should channel their energy into building solutions that resonate with users, trusting that market opportunities will follow. This mindset shift could be the key to unlocking the next big startup success story.
For those looking to dive deeper into Sardana’s insights, her discussions at events like TechCrunch All Stage provide actionable advice for navigating the startup landscape. Her perspective is a wake-up call for entrepreneurs to redefine what success looks like in the ever-evolving world of tech.
Alfred Lee
