🔗 Download the free market sizing guide: https://z.carta.com/3UxgJgE

Total Addressable Market (TAM) explained: In this lesson of Startup Essentials by Carta, we break down everything founders need to know about market sizing — the total addressable market (TAM), the serviceable addressable market (SAM), and the serviceable obtainable market (SOM). We also dive into two popular approaches to calculating market size: The top-down approach, and the bottom-up approach.

🔍 What this lesson covers:

• What market sizing is, and why it matters
• Total addressable market (TAM)
• Serviceable addressable market (SAM)
• Serviceable obtainable market (SOM)
• Top-down market sizing
• Bottom-up market sizing

DISCLOSURE: This communication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This communication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.

TIMECODES
00:00 Introduction
00:57 What is market size?
02:13 How do you calculate market size?
03:02 Total addressable market (TAM)
05:02 Serviceable addressable market (SAM)
06:35 Serviceable obtainable market (SOM)
07:33 Top-down vs. bottom-up approaches