Casado: Lowering marginal technology costs expands TAM and creates startup opportunities

“So one of them is often when you bring the marginal cost of something down, like with compute, you know, we did it for computation and for the internet, we did it with distribution. It increases the TAM a whole bunch. So, so for one, you almost always see this massive TAM expansion. And part of that tends to be because the TAM is bigger, you've got new users. And because you have no users, like there's normally like a new behavior that happens. Right? Like, this is very much the case with the internet, right? Which is, like, people weren't used to going to a computer and talking to everybody around the world on top of the internet. And existing companies don't know really how to think about new behaviors. Like, they've built these sales motions and the operating things around, like, the old behavior. And so, you see TAM expansion, you see new behaviors, those new behaviors provide white space for challengers, new, like, startup companies to come And to go ahead and fill those models.”

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