Market Due Diligence Checklist

Market Sizing

Bottom-up TAM (customers × price)

Top-down TAM (industry reports)

SAM (segment you can serve)

SOM (revenue you can capture)

Market Dynamics

Growth rate (CAGR >15% preferred)

Market maturity (early/rapid growth/accretive?

Regulatory environment (tailwinds or headwinds?

Seasonality and cyclicality

Competitive Analysis

Direct competitors (who solves the same problem?)

Indirect competitors (who solves adjacent problems?)

Potential entrants (who could enter this market?)

Competitive moat (network effects, switching costs, proprietary tech)

Frequently Asked Questions

What market size is needed for venture returns?

$1B+ TAM minimum. Markets under $500M rarely produce venture-scale returns.

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