30 July 2025
How to Define Your Market Size (TAM/SAM/SOM) - and Why It Matters to Investors
How Big Is Your Market? Why TAM/SAM/SOM Matters to Investors
When pitching to investors, one of the first questions you’ll face is: “How big is your market?” In this post, we break down how to define your Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM)—and why getting it right is crucial. Featuring real startup examples from the Frankfurt School ecosystem, this guide will show you how to structure market sizing using top-down and bottom-up methods and turn vague potential into concrete investor confidence.