Screening Criteria – the Market Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In funding a startup, it’s important to understand the target market. Here’s a list of key criteria to consider: The market is large and growing. Small markets will make it difficult to scale the business. The market has many sectors and segments. This provides more opportunities to build products and provide services. It’s often the case that the product built doesn’t resonate with the customers in that segment. The startup can pivot into other segments to find a better fit. The competition is clearly defined. Avoid startups that think they have no competition. Competitors may not be solving the problem in the same way, but they do take customers away. TAM and SOM. The total available market is large, and the service obtainable market is clearly defined. The SOM is the size of the market the startup can reasonably expect to close. This must be large enough to build a self-sufficient business. Consider these factors in reviewing the target market of a startup. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.