A company that could benefit from a bottoms-up analysis is a start-up in the tech industry, such as a new software development company. This type of analysis would allow them to identify their target customer profile, understand their willingness to pay for the product, and strategize how to market and sell the product to them. This could help them to accurately calculate their total addressable market size and tailor their product and marketing strategies to meet the needs of their specific customer base.

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So how do you calculate your total addressable market size in a way that a top VC firm like Andressen Horowitz would like? Instead of the classic way to calculate TAM based on the market share of a total market size, Andressen Horowitz prefers what they call a "bottoms-up" analysis which counts your market size by the target customer profile, their willingness to pay for your product, and how you'll market and sell the product to them.

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Ultimate Pitch Deck (Part 4)

Need a pitch deck template to impress investors or potential partners? And why is it that the top-funded pitch decks all seem to follow the same forma...

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