Metrics & KPIs

SOM

Serviceable Obtainable Market - the realistic portion of SAM you can capture in the near term.

Full Definition

SOM (Serviceable Obtainable Market) is the portion of SAM that you can realistically capture given your resources, competition, and go-to-market strategy. It's the most practical market size metric and what investors often focus on for near-term projections. SOM typically represents 1-5% of SAM for early-stage startups.

Formula

SOM = SAM × Realistic market share percentage

Examples

  • 1With a $1.5B SAM and 2% realistic capture, SOM is $30M
  • 2First-year SOM projections should be conservative and achievable