SAM

Intermediate 🚀 Startup / VC

Definition

Serviceable Addressable Market—the portion of TAM you can realistically reach with your business model and resources; basically TAM divided by reality.

Example Usage

Our TAM is huge, but our SAM is probably just $100M since we're only targeting enterprise customers in North America.

Origin

Derivative of TAM, introduced as a more realistic market measurement

Fun Fact

Most founders skip SAM calculations and jump straight to optimistic revenue projections

Source: Venture capital due diligence terminology

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