In a recent insightful discussion, Jahanvi Sardana, a partner at Index Ventures, has challenged the conventional obsession with Total Addressable Market (TAM) that many early-stage founders grapple with. Speaking to TechCrunch, Sardana emphasized that a laser focus on TAM might not be the ultimate determinant of a startup’s success, especially when markets can be created or reshaped by innovative ideas.
Sardana pointed out that numerous successful startups have emerged from markets that were virtually nonexistent at their inception. She urged founders to prioritize solving real problems and creating value over chasing predefined market sizes. This perspective is a breath of fresh air for entrepreneurs who often feel pressured to justify their ideas with massive TAM figures to attract investors.
Instead of fixating on TAM, Sardana advises founders to focus on product-market fit and building a solution that resonates deeply with a specific audience. She believes that a strong initial user base can organically expand into larger markets, as demonstrated by many disruptive startups in the past.
Highlighting historical examples, Sardana noted how companies in tech and beyond have carved out new niches by addressing unmet needs, rather than fitting into existing market frameworks. This approach requires a bold vision and a willingness to venture into uncharted territory, a trait she encourages in the next generation of entrepreneurs.
Her advice comes at a time when the startup ecosystem is increasingly competitive, and founders face immense pressure to present scalable ideas to venture capitalists. Sardana’s insights serve as a reminder that innovation often precedes market size, and true disruption can redefine what’s possible.
For those looking to dive deeper into her thoughts, Sardana’s full discussion is available on TechCrunch. Her perspective could be the paradigm shift many founders need to rethink their strategies and focus on what truly matters in building a lasting business.
Maria Lourdes
