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Why we picked it Most market-sizing advice pushes you to inflate your TAM to look venture-scale. This piece argues the honest opposite: a market of $100M to $300M can support a genuinely excellent, profitable software company, and it walks through when that math actually works. A useful counterweight if your market looks small but each customer is worth a lot, and a good starting point rather than a verdict on your specific numbers.
I Was Born in a Small TAM
From PeakSpan Capital by PeakSpan Capital ~10 min read
- A niche market can support a strong business if goals are aligned: profitability and customer impact can matter more than IPO-scale growth.
- A small TAM is rarely static, you can grow it through ACV expansion, new verticals, and adjacent products over time.
- Owning a large share of a profitable company throwing off dividends can rival or beat a small slice of an unprofitable unicorn.