Glossary · Market
Serviceable Obtainable Market (SOM)
SOM is the realistic slice of SAM you can win in the next 1–3 years given competition and go-to-market capacity.
SOM is the realistic slice of SAM you can win in the next 1–3 years given competition and go-to-market capacity.
Definition
Formula
SOM ≈ SAM × (realistic share you can win in 1–3 years)
Worked example
SAM of $7.9B × 0.5% obtainable share in 3 years = ~$40M ARR potential. That maps to a Series A/B trajectory.
Common mistakes
- — Using the '1% of a huge market' heuristic — investors will discount this immediately.
- — Not tying SOM to a real GTM plan: sales rep capacity, marketing budget, sales cycle length.
Frequently asked questions
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TAM is the total annual revenue opportunity for a product if it captured 100% of its market.
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SAM is the slice of TAM you can actually serve with your product, geography, language, and channel today.
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