Youth == Growth

🌱 Aha’s TAM == Youth + Growth Markets

Youth

😈 Students or young users aged 11 to 35 is the prime target demographic, or prime “real estate” in the digital economy.

A significant number of the most successful B2C startups in a variety of industries (Facebook, Snapchat, Discord, TikTok, Robinhood, Shein, Roblox, Fortnite) have succeeded in targeting users of the student age group. Youth are the most social, and most willing to try new technologies.

Table 1. Companies Targeting Youth

Play-to-Earn

Axie Infinity, a play-to-earn game from Vietnam targeting mainly 20–35 year olds in the Philippines sold roughly $2.4B worth of Axie NFTs in 5 months in 2021. Axie’s governance coin AXS grew 44 times to a $7.5B market capitalization, and Axie itself grew to a $3B market capitalization for a company with 1.8M DAU.

Table 2. Play-to-Earn Tokens (as of Jan 10, 2022)

Recurring Addressable Market

While student tastes tend to be fleeting and hard to capture (e.g. no young person uses Facebook now), education is the most persistent and long lasting pain point for users 15 to 35. EdTech is a universal pain point, with a $10T global education market; edtech is growing 20% CAGR. There are 2+ million SAT takers per year, 4+ million PSAT takers per year, and 15+ million JEE takers per year.

🍎 The number of test takers a year represent not the total addressable market, but the recurring addressable new users each year (Figure 3).

In other words, we acquire users very cheaply when they are taking a standardized test, but keep them as users with fintech products over many years. We acquire users for a fintech product at edtech costs.

Figure 3. Recurring Addressable Market

Table 3. Edtech Comparisons

Growth Markets

Aside from US students, our primary target audience are markets with large youth populations digitizing rapidly. India has the largest student population in the world, with 250 million aged 10–19; 600 million under 25; 50% under 28. In India, the town Kota is dedicated for helping students prepare for competitive national engineering and medical college admissions exams. There is even a Netflix documentary about it.

Table 4. Majority of Growth Markets are Student Age

Consumer Fintech

B2C FinTech is also a universal pain point, with a $1T B2C US fintech market, growing 25% CAGR. The average US checking account lifespan is 16 years. Studies project 4.4+ billion of global digital wallets by 2025 (2.6 billion in 2020), with $7+ billion in crypto investment by Indian youths.

Table 5. Consumer Fintech Comparisons

Read more at Aha’s White Paper.