[Have your notes ready and feel free to pause at any time!]
The market matters. We’re here to make money.
Defining Market Size
Total Addressable Market (TAM): The overall revenue opportunity available.
Serviceable Available Market (SAM): The segment of TAM you can target.
Serviceable Obtainable Market (SOM): The portion of SAM you can realistically capture.
Calculating Market Size
Top-down approach: Using industry reports and data.
Bottom-up approach: Estimating market size based on your product’s price and target customer base.
Combining approaches for accuracy.
Presenting Market Size in Your Pitch
Using graphs and charts to visualize market potential.
Explaining the significance of TAM, SAM, and SOM to investors.
Emphasizing the growth potential of the market.
Analyzing and understanding market trends helps people understand where the longer term value lies.
Identifying Key Market Trends
Emerging technologies and innovations.
Shifts in consumer behavior or preferences.
Regulatory changes and their impact on the market.
Evaluating the Impact of Trends
How trends affect your target market.
Opportunities created by these trends for your startup.
Challenges posed by these trends and how you plan to address them.
Highlighting trends that support your startup’s growth potential.
Using data and examples to back up your claims.
Identifying Market Drivers
What Are Market Drivers? – Factors that influence market growth (e.g., technological advancements, economic factors, demographic changes).
The role of market drivers in shaping demand for your product.
Identifying Relevant Market Drivers
Pinpointing key drivers specific to your industry.
Understanding how these drivers create opportunities or risks for your startup.