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TAM, SAM, SOM: The Most Misunderstood Slide in Your Pitch Deck

  • Entrepreneurs often misuse TAM, SAM, SOM in their pitch decks by either inflating the numbers or lacking a clear understanding of their significance.
  • SOM (Serviceable Obtainable Market) represents the portion of SAM that can be captured in the next 1-3 years.
  • Investors focus on SOM as it demonstrates a credible plan for gaining traction and sustainable growth.
  • A bloated TAM without a realistic SOM indicates superficial research, while a well-supported SOM with growth assumptions showcases market understanding.
  • It is crucial to align SOM with the go-to-market (GTM) strategy, ensuring it corresponds to sales and marketing efforts.
  • Start by focusing on one segment of SOM, executing it effectively before expanding further.

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