All terms
CommercializationHospital Buyer & Reimbursement
TAM / SAM / SOM
Market sizing framework: total, serviceable available, and serviceable obtainable.
Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026
Definition
TAM (Total Addressable Market) is the total revenue opportunity if 100% of the market used the product. SAM (Serviceable Available Market) narrows to the segment the company can serve given regulatory, geographic, and product constraints. SOM (Serviceable Obtainable Market) is the realistic share over a defined timeframe.What this means in practice
Investors expect bottom-up TAM/SAM/SOM models. In MedTech, sizing must reflect procedure volumes, addressable indications, reimbursement constraints, and competitive dynamics. Common pitfalls
- •Top-down sizing ('1% of a $10B market') without unit economics is a red flag in any pitch.
Related terms
Shared paths + categoryCommercialization
Bottom-Up Market Sizing
Building market size from procedure volumes × price × penetration.
Same category
Regulatory
510(k) Premarket Notification(510(k))
FDA submission demonstrating a device is substantially equivalent to a legally marketed predicate.
Founder & Investor Primer · adjacent
Commercialization
Freedom to Operate(FTO)
Analysis of whether a product can be sold without infringing third-party IP.
Founder & Investor Primer
Regulatory
Breakthrough Device Designation(BDD)
FDA program providing expedited review for devices that treat life-threatening or irreversibly debilitating conditions.
Founder & Investor Primer
Investment & Finance
Capitalization Table(Cap Table)
Ledger of all securities issued by a company and who owns them.
Founder & Investor Primer
Investment & Finance
Convertible Note
Short-term debt that converts into equity at a future financing round.
Founder & Investor Primer
Latest in MedTech
Primary references
3 sourcesLink health: 3 verified· last checked 2026-06-20
a16z·1AdvaMed·1AHRMM·1
- 1a16z: market sizingVerifieda16za16z.com
- 2AdvaMed Code of EthicsVerifiedAdvaMedadvamed.org
- 3AHRMM - Healthcare Supply ChainVerifiedAHRMMahrmm.org
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