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Why we picked it A clean definition of the three market layers with the key distinction spelled out: TAM is the whole opportunity, SAM is what you can realistically serve, and SOM is what you will actually win. If the vocabulary still confuses you, this untangles it fast and shows why the SOM, your real near term slice, is the number that matters most.

Market Sizing for Startups: TAM, SAM, SOM Explained

From Forum Ventures by Forum Ventures

  • TAM is the whole market, SAM what you can serve, SOM what you win
  • SOM, your realistic near term slice, is what investors stress test
  • Present both top down and bottom up to be credible
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Answers How big does my market need to be for this to be a real business? How do I size a market for India specifically when data is messy? Investors keep asking for a top-down TAM slide, but I built my number bottoms-up. Which do I show? How do I size a market I want to sell to businesses outside the big Indian startup hubs? How do I know if a trend is big enough to build a company on, or just a small niche?
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