The slow growth of public SaaS isn't just an execution failure; it's a structural problem. We created so many VC-backed companies that markets became saturated, blocking adjacent expansion opportunities and creating a 'Total Addressable Market (TAM) trap'.

Technically-minded founders often believe superior technology is the ultimate measure of success. The critical metamorphosis is realizing the market only rewards a great business model, measured by revenue and margins, not technical elegance. Appreciating go-to-market is essential.

Investors and acquirers pay premiums for predictable revenue, which comes from retaining and upselling existing customers. This "expansion revenue" is a far greater value multiplier than simply acquiring new customers, a metric most founders wrongly prioritize.

When a niche-dominant company like Remitly announces a massive TAM expansion, it can be a negative signal. This move often means abandoning a defensible moat to compete in a larger, more competitive market where its specialized advantages no longer apply, risking its core business.

Dara Khosrowshahi argues that entrepreneurs over-index on Total Addressable Market (TAM), which he sees mainly as a fundraising tool. The real focus should be on proving product-market fit and solid unit economics in a small, defensible niche. Once that's established, you can expand into adjacent markets.

Founder-led selling is essential for the first 6-12 months but becomes a critical growth bottleneck if it continues. Founders who can't let go create a self-fulfilling prophecy where the business can't scale beyond them. They must be coached to transition from being the primary seller to an enabler of the sales team.

For venture capitalists investing in AI, the primary success indicator is massive Total Addressable Market (TAM) expansion. Traditional concerns like entry price become secondary when a company is fundamentally redefining its market size. Without this expansion, the investment is not worthwhile in the current AI landscape.

Companies like Amazon (from books to cloud) and Intuitive Surgical (from one specific surgery to many) became massive winners by creating new markets, not just conquering existing ones. Investors should prioritize businesses with the innovative capacity to expand their TAM, as initial market sizes are often misleadingly small.

The biggest risk for a founder isn't a quick failure, but a slow-growing company stuck at a few million in ARR. This 'zombie' state consumes years of your life without delivering on the venture-scale dream. To avoid this, anchor your startup in a future where the need for it is growing, not shrinking.