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TAM/SAM/SOM is only for founders who think small Haje Jan Kamps 12:05 PM PDT · October 20, 2023 ...
Learn how TAM, SAM, and SOM can provide clarity and guidance in evaluating market opportunities and fine-tuning your SEO strategy.
TAM, SAM and SOM So what metrics do investors look at in order to make their investment decision? TAM, SAM and SOM are all acronyms bandied about, giving investors very different information.
Aware of this, most venture capitalists and sophisticated investors will only back companies that understand their TAM, SAM and SOM. Total Addressable Market is easy to identify and basically useless.
Startup founders, trying to show how big their markets are, often overstep the mark, claiming TAM/SAM/SOM numbers that are unobtainable and absurd.
This means your SOM is about 16 percent of your SAM (or around 5 percent of your TAM, or a little under 1 percent of your total city’s population).
By understanding TAM, SAM, and SOM key market data and market size metrics, you’ll eliminate financial projections’ guesswork, show prospective investors how they stand to gain from investing ...
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