Crafting an effective market size slide is a vital yet often overlooked part of developing a compelling investor pitch deck. This single slide bears immense influence in demonstrating the scalability and growth potential of your business. Follow these 10 tips to create high-impact market-size slides that grab attention:
Lead With the Big Picture
Start by introducing the total addressable market (TAM). This refers to the total market demand for your product. While you may only capture a fraction of this initially, highlighting a sizable TAM upfront anchors investors’ perception of your opportunity.
Break Down TAM Into SAM and SOM
Next, discuss the serviceable available market (SAM)—the segment of TAM realistically accessible to you. Then explain your serviceable obtainable market (SOM)—the portion of SAM you can capture presently with your capabilities and resources. Walk investors through this funnel.
Size Your Market Top-Down and Bottom-Up
Leverage both approaches for robust projections. Top-down begins with TAM and then narrows down. Bottom-up starts with your existing customers and then scales up. Blend macro and micro perspectives for credibility.
Get Granular With Target Customer Data
Anchor your sizing with specifics on target demographics, psychographics, behavior, spending habits, and other attributes. This tangibility helps investors visualize the market.
Benchmark Against Competitors
Profile key competitors and their market share. This context strengthens your value proposition and demonstrates your market awareness.
Corroborate With Multiple Data Sources
Substantiate your sizing with credible third-party data from research firms, industry associations, government agencies, and proprietary surveys. Avoid guesses or rules of thumb.
Visualize Data-Clearly and Concisely
Use simple charts that illustrate key data at a glance. Remember: less is more. Avoid cluttered graphics that strain cognitive load.
Map Growth Drivers and Trends
Outline market growth catalysts like favorable demographics, new technologies, or changing consumer preferences. This foresight reassures investors of scalability.
Be Conservative In Early Stage Pitches
Founders should size markets prudently in early pitches, emphasizing realistic projections grounded in evidence. Save bolder hockey stick graphs for when you have more traction.
Place the Market Size Slide Strategically
The market slide should follow shortly after the problem/solution to construct a logical flow. Don’t open with market sizing statistics as it disengages audiences lacking context.
In summary, an insightful market size slide strengthens the backbone of your pitch. It expands perceptions of your potential scale and compounds your valuation. Just be sure to strike the right balance between ambitious projections and credible data. Let your slide deck do the talking.