SOM
SOM, which stands for Serviceable Obtainable Market, is a key concept used in venture capital and business planning. It represents the portion of the market that a company can realistically capture with its products or services. Think of it as a more realistic version of the total market size - while the total market might be huge, the SOM shows what portion a company could actually serve given its resources, competition, and strategy. For example, while the total market for coffee shops might be $100 billion, a single chain's SOM might only be $1 billion based on their specific locations and capabilities.
Examples in Resumes
Conducted detailed SOM analysis for Series A startup investments
Developed financial models including SOM calculations for portfolio companies
Led market research initiatives to determine SOM for emerging technologies
Typical job title: "Market Research Analysts"
Also try searching for:
Where to Find Market Research Analysts
Professional Networks
Industry Resources
- • PitchBook
- • CB Insights
- • Crunchbase
Example Interview Questions
Senior Level Questions
Q: How do you validate SOM calculations for an emerging market where historical data is limited?
Expected Answer: A senior analyst should explain methods like bottom-up analysis, competitor benchmarking, and using analogous markets as reference points. They should also discuss how to validate assumptions through customer interviews and industry expert consultations.
Q: How would you adjust SOM calculations when evaluating international market expansion?
Expected Answer: Should discuss considering factors like local competition, regulatory environment, cultural differences, and purchasing power variations. Should also mention the importance of country-specific market research and local partnerships.
Mid Level Questions
Q: What's the difference between TAM, SAM, and SOM?
Expected Answer: Should explain that TAM is the Total Available Market (everyone who could theoretically buy), SAM is Serviceable Available Market (those who could realistically buy), and SOM is Serviceable Obtainable Market (the portion you can actually capture).
Q: How do you calculate SOM for a new product category?
Expected Answer: Should discuss using comparable products, market research, customer surveys, and pilot testing to estimate potential market share. Should mention the importance of conservative estimates and multiple data sources.
Junior Level Questions
Q: What factors influence SOM calculations?
Expected Answer: Should mention competition, pricing, distribution channels, geographic reach, and company resources as key factors that determine how much of a market a company can realistically capture.
Q: Why is SOM important in venture capital?
Expected Answer: Should explain that SOM helps determine investment potential by showing realistic revenue opportunities, helps validate business plans, and indicates growth potential for startups.
Experience Level Indicators
Junior (0-2 years)
- Basic market research
- Financial modeling fundamentals
- Understanding of business metrics
- Data collection and analysis
Mid (2-5 years)
- Advanced market sizing techniques
- Competitive analysis
- Industry research methodology
- Investment thesis development
Senior (5+ years)
- Complex market analysis
- Investment strategy development
- Due diligence leadership
- Portfolio company advisory
Red Flags to Watch For
- Unable to differentiate between TAM, SAM, and SOM
- Lack of understanding of basic market research methods
- No experience with financial modeling
- Poor grasp of competitive analysis
- Limited knowledge of industry research tools
Related Terms
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