from CB insights:
Opinions vary quite a bit among both operators & investors, with technology investors tending to have the most divergent (and strongest) opinions.
Many investors say they don’t look at TAM for new markets, because it’s often too small or undefined to even be interesting or valuable. In these cases, doing any sort of TAM analysis is actually misleading and will make you overlook opportunities. What was the TAM for something like Airbnb (couch surfing) or Amazon (books) when they started?
On the flip side are many investors who view the market as critical and perhaps the top dimension when evaluating a company.