Strategy & Portfolio
Bottom-Up Analysis
A market sizing approach that builds estimates from actual customer data and unit economics rather than top-down market reports.
Bottom-up analysis calculates market opportunity by starting with specific, measurable inputs: number of potential customers, expected conversion rates, average revenue per customer, and expansion potential. VCs prefer this to top-down TAM claims.
In Practice
Instead of citing a $50B TAM from Gartner, the founder showed: 50,000 target companies × 12% expected penetration × $50K ACV = $300M serviceable revenue opportunity.
Why It Matters
Bottom-up analysis demonstrates that a founder understands their actual market mechanics. It's more credible and defensible than citing analyst reports.
VC Beast Take
Any startup can claim a $100B TAM. The ones that can build it from the bottom up actually understand their market.
Related Concepts
Further Reading
How VCs Evaluate Startups: Inside the Due Diligence Process
Market analysis, founder assessment, reference checks, financial modeling, IC memos—a detailed look at how venture capital firms actually decide which startups to fund.
How to Get a Job in Venture Capital: The Definitive Guide (2026)
The complete guide to venture capital careers: roles from analyst to partner, salary ranges at every level, interview prep, and proven strategies to break in — even without a finance background.
How to Write a Pitch Deck That Actually Gets Funded
Most pitch decks fail silently. Here's a slide-by-slide breakdown of what actually works when pitching VCs — based on what investors really look for.
What Is Venture Capital and How Does It Work
A comprehensive guide to venture capital — how it works, who the players are, and why it matters for startups seeking growth capital in today's market.
VentureKit
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