How Tech Investors Missed by a Mile: TAM vs. SAM

SoftBank’s Masayoshi Son and JPMorgan’s Jamie Dimon issued mea culpas about WeWork this week, admitting to mistakes and lessons learned. One of them: when backing a business with billions of dollars, it’s important to pay more attention to how it is going to make money. 

A shocker right? Yet an appreciation for the importance of profits is pretty much the explanation that everyone is peddling for why so many IPOs have fallen short of their expectations this year.