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What is a Total Addressable Market (TAM)?

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In venture capital terminology, Total Addressable Market (TAM) is an estimate of the potential revenue a company (or its product) could theoretically generate if it somehow completely captured the market (100%). It is a metric used to essentially try to determine the size of any potential business opportunity - however note there are several approaches, so it's important to understand how a TAM is calculated when evaluating. 

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