Index Ventures’ Jahanvi Sardana shares the truth about TAM and what founders should focus on instead

In a recent interview, Jahanvi Sardana, a partner at Index Ventures, addressed the common concern among founders about finding the Total Addressable Market (TAM) for their products or services. Sardana pointed out that many successful startups have emerged from markets that were virtually nonexistent at the time. She emphasized that founders should shift their focus away from solely concentrating on TAM and instead prioritize building a great product, understanding their target customers, and creating value for those customers. Sardana believes that founders often get too caught up in the pursuit of a large TAM, which can distract them from the essential elements of building a successful business. The article highlights Sardana's perspective that the market size should not be the primary driver for a startup's success. Instead, she encourages founders to focus on developing a product that truly addresses the needs of their target audience and creating a sustainable, scalable business model.