Sorry Guys – It’s the Size of the Wave, Not the Motion of the Ocean

 “How big can this get?”  It is one of those vague objections that is used to kill off many deals.  The reason that many companies fail on this question is that they don’t put enough effort into this analysis (and frankly, if more people did do this analysis some businesses might actually not get started). My own hypothesis on why more market sizing doesn’t happen is that many entrepreneurs are in love with product features rather than thinking through how much they could charge for their product, how many people would actually buy it, how many competitors they will have and therefore how big the market might be.

 

(Full Post: http://www.bothsidesofthetable.com/2009/06/16/sorry-guys-its-the-size-of-the-wave-not-the-motion-of-the-ocean/


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Mark Suster 

Mark Suster is a 2x entrepreneur and an investor. He joined Upfront Ventures in 2007 as a General Partner after selling his company Koral to Salesforce.com. He focuses on early-stage technology companies.

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Collection: Funding
Category: Pitch Content & Format