Seeking Insights on SOM Benchmarks for VC Investment in Healthcare Startups
Hi everyone,
I’m building a startup in the healthcare space focused on doctors, hospitals, and clinical trials. I’ve done a bottom-up market size approximation across these sectors and have a decent understanding of my Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM).
I wanted to get your thoughts on a couple of key questions: 1. What is an attractive SOM for VCs in the healthcare space? For example, is there a general SOM threshold (e.g., $100M, $200M, etc.) that investors find appealing? 2. What percentage of SOM should I ideally target to achieve within 5 years for it to be considered a strong and viable investment? I’m trying to ensure my 5-year projections align with what VCs typically expect.
Would love to hear from anyone with experience pitching to VCs or those who’ve seen successful healthcare startups in this space. Any advice, benchmarks, or resources would be super helpful!
Thanks in advance!
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Every calculation is bullshit unless you have a working MVP in your hands that customers actually like
Most VCs won't invest in pitch decks and tam sam som calculations. They will be interested if you have an MVP and paying customers (at least a few).
Also, your product/solution must be global from early days. Otherwise there's not much point calculating tam som etc. Even they are approximate numbers and don't truly reflect ground reality.
I have a working MVP and paying cutomers. They are asking for these numbers on my deck and as a tech person it is difficult for me to understand what is expected from those numbers. Hence the question.