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When people say oh it has a $30 Billion addressable market... how do they come up with these numbers? Startup CEO types love to throw around these numbers but s
by cphoover 6y ago
When people say oh it has a $30 Billion addressable market... how do they come up with these numbers? Startup CEO types love to throw around these numbers but some time they seem wildly optimistic, and their methodology is rarely explained.
- malyk 6y agoCould be as simple as "number of companies that need auth x number of employees of that company x average cost per seat for Okta/Auth0". Now, figuring out some of those numbers is harder. Okta simplest pricing is $2 per person per month, but to really us it you are looking at paying more like $15 a month. So, per user it's $180 a year. 30 billion / 180 = 166 million users. If average company size is 500, that's 330k companies, which is a lot. Anyway, those are just very quick back of the napkin numbers. I would guess they've done a little more work to come up with the number. (pls forgive any math errors/rounding!)
- pc86 6y agoYeah these figures really are less to differentiate between the $33 billion and $34 billion markets, and more to differentiate between the $33 billion and $33 million markets. Just a way to get a rough idea of approximate size, as compared to other rough ideas of approximate size.