The document discusses why problem size matters more than total addressable market (TAM) size when evaluating startup opportunities. It argues that seed investors overly focus on high TAMs but fail to consider whether the problem is large, urgent, and valuable. Instead of solely anchoring on TAM, the document suggests seed investors should evaluate the scope of the problem a startup aims to solve based on these three criteria. It provides examples like photo archiving and SMB worker scheduling as problems that are large, urgent, and valuable, regardless of their overall market size.
