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More in the 50 Questions Series50 questions: Should I let my lawyer negotiate the deal? | 50 Questions: What are the key terms in a termsheet? (Part 2 of 2) | 50 questions: What can I do to control the timetable/reduce the time it takes to raise venture capital? |
50 questions: How does a VC estimate market size?
Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful.
Many entrepreneurs are surprised by how much attention VCs pay to market size. You might have a hot product and an awesome team, but the VC is spending all of her time poring over analyst reports trying to work out how big your addressable market can be.
In this week’s post (#16 in the series), Nic explains the different ways in which a VC estimates market size, and why it matters for your business.
Hungry for more? Go to the 50 questions homepage for more insights into venture capital.