Serviceable Addressable Market (SAM)
Definition
SAM is the portion of the total addressable market that a company’s product and business model can realistically reach, narrowing TAM by factors like geography, customer segment, or delivery capability.
How it comes up in fundraising
Founders present TAM, SAM, and SOM together to move from a huge global category number down to the market they can actually sell into with today’s product and go-to-market motion.
Frequently asked questions
How is SAM different from TAM?
TAM is the total theoretical market for the category. SAM narrows that to the segment a specific company’s product, geography, and business model can serve.
What is SOM, and how does it relate to SAM?
SOM, the serviceable obtainable market, is the realistic share of SAM a company can actually capture given competition, resources, and time, and it is usually the smallest of the three numbers.
Put this term to work
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