SAM (Serviceable Addressable Market)

Definition

The portion of TAM you can actually reach with your sales and marketing strategy—much smaller than TAM but still wildly optimistic.

Example Usage

Our TAM is $100B, our SAM is $5B, and our actual realistic SOM is probably $30M but investors didn't want to hear that part.

Origin

Subset of TAM analysis terminology

Fun Fact

Smart investors pay more attention to SAM and SOM than to TAM.

Source: Standard market analysis terminology

Related Terms

Beginner

ventures

Risky business undertakings or investments that could either make you rich or teach you expensive lessons about market dynamics. In startup speak, it's what venture capitalists fund, hoping that one unicorn will make up for the nine failures. Think of ventures as business experiments where the hypothesis is "this will make money" and the results are usually mixed.

🚀 Startup / VC

Intermediate

give-to-get

The VC expectation that founders will make introductions, provide advice, and help other portfolio companies in exchange for investment and support. Networking as a contractual obligation.

🚀 Startup / VC

Beginner

fundraising

The noble art of convincing individuals, corporations, and foundations to part with their money for your cause, institution, or startup dream. In education, it's what keeps universities building new buildings with donors' names on them. In nonprofits and startups, it's a full-time job disguised as networking events and carefully crafted pitch decks.

🚀 Startup / VC

Intermediate

runway fumes

The terrifying state of having mere weeks of cash remaining, when every expense is scrutinized and founders start drafting layoff announcements. The financial equivalent of flying on empty while the engine sputters.

🚀 Startup / VC

Intermediate

capital efficiency

The art of building a valuable company while raising as little outside funding as possible, preserving founder ownership and bragging rights. It's increasingly rare in an era of mega-rounds and bloated valuations.

🚀 Startup / VC

Intermediate

equity crowdfunding

Raising capital from numerous small investors through online platforms, democratizing access to startup investment and the opportunity to lose money on early-stage companies. Kickstarter, but instead of getting a T-shirt, you get illiquid securities.

🚀 Startup / VC

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