The purpose of including a market size slide in a pitch deck is to demonstrate the potential scale and opportunity of your business. This slide provides crucial context to investors by outlining the total addressable market (TAM), the serviceable available market (SAM), and the serviceable obtainable market (SOM). The TAM represents the entire revenue opportunity for a particular product or service. The SAM is the portion of the TAM that you can serve with your product or service, given factors like geographical limitations, distribution channels, and more. Finally, the SOM is the portion of the SAM that you can realistically capture. This information helps investors understand the growth potential and scalability of your business. A large market size can indicate a promising opportunity, while a smaller one can suggest a more niche, but potentially less competitive, field. In addition to showing the potential return on investment, presenting the market size also allows you to demonstrate your understanding of the industry landscape, your competitors, and the challenges and opportunities your business may face.
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