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Market matching, two puzzels that don't fit with each other

DealPotential April 7, 2025

The Market Matching Problem: Why Investors Get TAM and Growth Wrong

The Market Matching Problem: Why Investors Get TAM and Growth Wrong

Table of contents

The Market-Matching Problem: Why Investors Get TAM and Growth Wrong

Investors lose millions yearly on one critical mistake: misjudging a company’s true market. When this happens, your TAM estimates, growth projections, and competitive analysis become unreliable—derailing your entire investment thesis.

The Problem: Flawed Market Matching Skews Decisions

Most companies don’t fit neatly into a single market category. For example:

1. Could a mobile commerce app belong to general e-commerce, social commerce, or a niche like gifting?

2. Is a SaaS tool HR software, payroll automation, or workforce analytics?

This isn’t just an academic error—it has real consequences. When a company is misclassified, you get:

Flawed TAM calculations (overestimating or underestimating opportunity)

Misaligned growth benchmarks (comparing a niche player to the wrong trends)

Weak competitive analysis (missing disruptors or overestimating rivals)

Since many high-potential companies defy easy categorization, traditional market-sizing methods often fail. Consequently, it leads to costly investment mistakes.

Questions that signal you've got the market wrong

To avoid misclassification, consider the following questions:

1. How many users engage with mobile commerce apps?

2. What’s the true revenue potential for the segment?

3. Does the market saturation exist, or is there untapped potential?

In the absence of precise market matching, you make decisions based on guesswork—not data.

The Solution: AI-Powered Market Matching

Unlike traditional data providers, our AI doesn’t just filter data—it understands market hierarchies, niches, and emerging trends to ensure every company is evaluated against the right benchmarks from the start.

Market matching

Benefits for private investors

AI-powered market matching delivers real, measurable benefits:

70% faster market evaluation – Cut research time and accelerate due diligence

Double your qualified pipeline – Focus only on companies with real potential

No more guesswork – Data-driven insights, not hunches

Why Speed & Accuracy Matter

While you spend hours manually verifying market fit and assessing the market, your competitors are closing deals. With AI-driven market matching, you get:

Instant clarity on where a company truly competes

Confident investment decisions backed by precise data

A competitive edge in identifying high-growth opportunities first

Conclusion: Stop Guessing, Start Investing Smarter

Market misclassification costs investors time, money, and missed opportunities. By leveraging AI-powered precision, you will be able to:

Eliminate sizing errors

Spot hidden gems before competitors

Move faster with confidence

Ready to fix your market-matching problem?

Join us

Book a demo or request a free trial today and experience firsthand how we can make a significant impact on your business.

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