Better than TAM SAM SOM 🚀 startup market sizing [Video]

Better than TAM SAM SOM 🚀 startup market sizing

Lance Cottrell, host of Feel the Boot, explains the importance of understanding TAM (Total Addressable Market), SAM (Serviceable Available Market), and SOM (Serviceable Obtainable Market) in startup pitches to investors. He emphasizes the necessity for startups to convincingly present their market opportunity in terms of potential revenue to attract angel investors and venture capitalists. The video highlights common mistakes in calculating market size and recommends a bottom-up approach for more accurate and convincing market analysis. This includes starting with a direct focus on the target market and expanding from there, to represent potential growth and market reach more realistically. Cottrell also suggests presenting market analysis in a timeline, moving from launch to expansion and finally to the total market, to provide a clearer picture of growth strategy and potential.

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00:00 Unlocking the Secrets of Market Size in Your Startup Pitch
00:33 Welcome to Feel the Boot: Navigating the Startup Journey
01:09 Why Market Size Matters to Investors
02:29 Decoding TAM, SAM, and SOM: The Basics
04:09 Common Mistakes in Presenting Market Size
05:39 A Real-World Example: The Acme Clothing Company
08:19 The Power of Bottom-Up Analysis for Market Sizing
09:42 Finding the Data: How to Accurately Calculate Your Market Opportunity
14:56 Beyond TAM, SAM, SOM: A More Dynamic Approach to Market Sizing
20:49 Conclusion and Final Thoughts

Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders.