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Accel India's three tests for a segment (uniformity, enough size, reachability at a sane acquisition cost) are the cleanest way to judge whether a candidate second ICP is a real market or a distraction.
Defining Your Market: Choose the right peak before you start climbing the mountain
From SeedToScale Insights (Accel India) by Accel India 12 min read
- Treats 2 million dollars of ARR as the benchmark by which product-market fit has actually happened.
- A TAM of 500 million to 1 billion dollars gives you a chance at 50 million dollars of revenue.
- CAC should be recovered in 2 to 3 months of revenue if bootstrapped, under 12 months if VC backed.
- Do not enter a new region unless you can see 5 to 10 million ARR there, and pick a second domain only past 3 to 5 million.
