Agenda
Announcements & Feedback
Theory
Abaca Venture Levels
Level
Typical Funding
Market
Concepts
Market Size Methods
Top Down — External report
Bottoms Up — Simple model based on pricing
How much you charge
$100K per unit
5M units sold each year (e.g., homes)
7% of units sold are their target market
0.7%
How many units you might sell
350,000
Multiplied together
$35B
$350M potential annual revenue per year
CAGR
Typically accompanies market size reports
Framework
2% CAGR = +20% growth in 10 years
10% CAGR = 3x growth in 10 years
25% CAGR = 10x growth in 10 years
Market Trends
Provide qualitative data
Mordor Intelligence — recommendation
Examples
Application
Pick a tag (e.g., YCombinator, industry) and illustratively complete the assignment together.
Assignment
From your list of 10 startups, choose 3 that you think have the best “market potential” (e.g., biggest market, fastest growing market, best competitive advantage).