As for the survivors of the Second Division, Zaragoza will have to face their faces with those of Zidane, Mirandés with Sevilla, Lightning will be measured at Villarreal and Tenerife will receive Athletic. As they have reached the eighth most LaLiga Santander team than lower categories, they have had to face four First teams against each other, such as the Barcelona-Leganés and Real Sociedad-Osasuna. The sixteen winners in this round will get a ticket for the fourths, which will be played on February 4, 5 and 6. But it will be a round whose raffle will be carried out in a pure way, except for the condition of playing in the field of the lower category team. That is, if two Second or Second B clubs pass they could face each other and they would no longer be forced to measure themselves with a higher level, which could ensure a modest in the semifinals. Pairs of the round of 16 of the Copa del Rey Badajoz – GranadaCultural – ValenciaTenerife – AthleticZaragoza – Real MadridMirandés – SevilleLightning – VillarrealBarcelona -LeganésReal Sociedad – Osasuna The new Copa del Rey does not stop surprises for Spanish football. The round of 16 of Copa del Rey, whose tie will be played on January 28, 29 and 30, has matched Zaragoza with Real Madrid and Leganés with Barcelona.The new format of the KO tournament with a single match has been devastating for top-level teams. Only ten First Division clubs remain alive in the competition, while four from Second and two from Second B (Cultural Leonesa and Badajoz) survive. The Cultural, which comes from giving the biggest bell of the tournament eliminating the extension of Atlético de Madrid, will face Valencia, the champion of the tournament, in the Kingdom of León. On the other hand, Badajoz, executioner of Eibar de Mendilibar, will face Granada.
If you are an entrepreneur looking to raise capital for your startup, or an investor considering a market, heed this: There is no single number that represents the size of a market. Let’s emphasize that: Never rely on a single number to judge the potential of a market and a company targeting that market — no matter how big it is, no matter how convincing, methodical, and detailed the market size analysis is. Despite what industry analysts, market research reports, or well-meaning bankers and pundits tell you, there is no way to boil down the economic or value-adding potential a company has in a particular market segment to one magic number.4 Reasons Why Determining Market Size Requires Being More Comprehensive and Diving DeeperAs venture capital investors, we have to carry out this analysis on every single prospect that we look at, and we deploy a full range of analysis. Sometimes it’s simply a back-of-the-envelop calculation in simple cases, but sometimes it involves going into excruciating details. In our diligence, we study our prospect companies’ market extremely carefully, and try to validate any quantitative model with feedback and inputs from market participants and experts. But we never make a decision on a single number that we consider represents the market size. The reasons for this are simple:1) Technology Is Always in FluxThe nature of technology is that it is always evolving, and so the market for a technology is always new and evolving. There will always be new markets that arise because of new technologies or new ways of utilizing existing technologies. The numerical market size does not tell you whether the market represents a groundbreaking development or whether it is simply a segmentation of an existing mature market.2) There Is a Difference Between Potential Total Market and Targetable MarketWe conduct market sizing to understand how big a company can grow if it focuses solely on that market, which is a proxy for potential returns on the investment. But this is often not the case, especially in venture capital, where the investment horizon is long and companies are expected to grow, evolve, and adjust to changing markets and opportunities. Therefore, it is not clear whether a single number represents that size of the targetable market as opposed to the potential total market (targetable market segments are segments that your product and services can address right now, without major product enhancement or addition.)3) Some Markets Are More Sensitive to Outside Factors than OthersAs we have learned through the most recent economic crisis, addressable market size does not help measure or take into account how sensitive the market value is to macroeconomic trends or business cycles. Therefore it leaves out major question marks as to the potential shrinkage or loss of market demand in a global recession. For example, a smaller but “recession-proof” target market might have better “expected” value than a market that can be extremely large or extremely small depending on business cycles.4) The Question of ValueLastly, market size has to be consistent with the economic value created and captured by the company’s product and technology — that is, ultimately, the company should be worth the value that its technology/product is generating for its customers. But what “value” exactly means is typically not fully settled for many early-stage companies. The pricing model of the product might undergo major changes, dramatically increasing or eliminating market size. Likewise, the value of a network of users might grow in geometric terms or might result in declining marginal gains. The bottom line is that boiling down a market opportunity to one single number really isn’t realistic or productive. But the good news is, most VCs understand that, too. So when you see a big market size number in a pitch deck or presentation, or if someone asks you to generate a big market size estimate, take it with a grain of salt and look for the hidden factors such as growth, maturity, economic value, and addressability. AddThis Sharing ButtonsShare to FacebookFacebookShare to TwitterTwitterShare to PrintPrintShare to EmailEmailShare to MoreAddThis