This Week in Startups How to calculate "Bottom-up TAM" + Hubspot Co-Founder Brian Halligan on his new climate fund | E1634
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Dec 11, 2022 
Brian Halligan, Co-founder of HubSpot and founder of Propeller, a climate tech fund, discusses his $100M mission to protect the oceans. He dives into the nuances of calculating Total Addressable Market (TAM) and its importance for startups, sharing insights from his journey as an entrepreneur turned investor. Halligan also highlights innovative ocean technology investments and the need for responsible resource stewardship, mentioning partnerships like those with the Woods Hole Oceanographic Institution. The conversation bridges entrepreneurial strategies with urgent climate solutions.
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Importance of TAM Calculation
- Founders should meticulously calculate their Total Addressable Market (TAM) to increase investment chances.
- Avoid lazy TAM calculations; granular examples of underestimated and overestimated TAMs are crucial.
Airbnb and Uber: Exceeding TAM
- Airbnb and Uber initially underestimated their TAM, focusing on existing markets like hotels and taxis.
- They later expanded by including broader segments like all travel and personal transportation.
Bottom-Up TAM
- Use a bottom-up TAM approach for intellectual honesty, considering actual customer acquisition.
- Don't be overly optimistic; consider real-world limitations and potential market growth.
