Why 'medium-sized' TAM markets ($2–3B) are the ideal startup target

When Hyper Agent researched Greg Isenberg's startup idea — hyperlocal market reports for real estate agents generated from public data — it produced a business case that highlighted what makes the opportunity compelling: it's a medium-sized market, perhaps a couple of billion dollars in TAM. That's not a hundred-billion-dollar market where massive incumbents will fight over every dollar, but it's large enough that capturing even a double-digit percentage share can yield a few hundred million per year in revenue. The idea is that you can build a very lucrative business while staying small enough that the really big players aren't coming after you. This 'mini or medium market' framing is a useful mental model for founders evaluating opportunity size.