Investors—and particularly venture capitalists—only pay attention to or read your pitch deck if you can help them increase the value of their investment. They are seeking significant market opportunities as a result.

You provide specific data on the size of the market your company can access (commonly referred to as the TAM, or Total Available Market) and whether it is specialized in any particular areas with your market slide. We urge you to conduct thorough research into these figures, support them with reliable sources, and incorporate them into the presentation. Presenting incorrect market information to an investor who is listening is the worst possible scenario. A strong market slide, on the other hand, demonstrates to the investor that you are the best candidate for the job because you can make wise choices based on your extensive knowledge.

In-depth market opportunities particularly appeal to investors. One illustration is a market that will change as a result of outside factors like laws or emerging technology. A current illustration of this is how “Flixbus” was able to achieve unicorn status as a result of the German long-distance bus network being made available to private businesses. Growing markets are another thing that attracts investors, so if your market’s demand is increasing, including the growth figures.

Building your market slide when you are starting in a new market can be difficult due to the lack of data. In this situation, it is wise to consider analogies from other industry sectors and support your points with data from the market you are competing in. Uber is a frequently cited illustration.

Even though they introduced a completely new service to the public and a ride-sharing market now exists, they chose to contrast themselves with the “taxi market.”

A word on TAM, SAM, and company…

Some of you will likely be thinking of a significant question right now. What is this TAM you’re referring to? For this reason, I’ll give you a quick rundown of the key points.

TAM stands for the total addressable market.

The TAM responds to the query: “How many people are there and how much are they willing to spend?” (For example, the education market was $1.3B in 2017).

The term “serviceable addressable market” (SAM)

SAM is a smaller segment of the market (such as the K–12 education market) that we aim to serve with our offering.

In most cases, you should include a projection on your pitch deck market slide that resembles. By 2025, we want our SAM to hold 10% of the market.