What's Happening?
Jahanvi Sardana, a partner at Index Ventures, shared insights on the concept of Total Addressable Market (TAM) and what founders should prioritize instead. Speaking at TechCrunch's 2025 All Stage event, Sardana emphasized that many successful startups emerged from markets that were initially nonexistent. She categorized TAM into three types: known market, emerging market, and invisible market. Sardana advised founders to focus on understanding their customers and the unique value their product offers, rather than solely relying on industry metrics.
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Why It's Important?
Sardana's insights are significant for early-stage founders navigating the startup landscape. Her emphasis on understanding customer needs and product-market fit highlights the importance of innovation and adaptability. By focusing on customer insights rather than predefined market metrics, founders can better position their startups for success. This approach encourages founders to create new markets and unlock supply, potentially leading to significant changes in consumer behavior and industry dynamics.
What's Next?
Founders are encouraged to evaluate their market strategies and consider how their products can ride emerging waves, such as artificial intelligence. Sardana's advice suggests that founders should be prepared to create new markets and demonstrate their innovation to investors. As startups continue to evolve, understanding customer needs and adapting to market changes will be crucial for long-term success. The insights shared at the TechCrunch event may influence how founders approach their business models and investor pitches.
Beyond the Headlines
Sardana's discussion on TAM and market creation underscores the dynamic nature of entrepreneurship. Her perspective challenges traditional views on market analysis and encourages founders to think creatively about their business opportunities. By focusing on customer needs and innovation, founders can potentially disrupt existing industries and create new market segments. This approach aligns with the broader trend of startups driving change and shaping the future of various sectors.
