What Is TAM, SAM, SOM?
Total, Serviceable, and Obtainable market sizes — used for market sizing and fundraising.
Total, Serviceable, and Obtainable market sizes — used for market sizing and fundraising.
TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market) are three levels of market sizing used to evaluate business opportunities and communicate market potential to investors.
TAM is the total market demand for your product category. SAM is the portion of TAM that your product can actually serve (based on geography, features, segment). SOM is the realistic share of SAM you can capture in the near term.
Investors use these metrics to evaluate whether the opportunity is large enough to support a venture-scale return. A common pitfall is overstating TAM — it's better to show a focused, credible SAM with a clear path to expansion.
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