[HN Gopher] Ask HN: What SOM Makes Startups Attractive to VCs?
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       Ask HN: What SOM Makes Startups Attractive to VCs?
        
       Hi HN,  I'm working on a healthcare startup targeting doctors,
       hospitals, and clinical trials. I've built a bottom-up
       approximation of market size and have estimated my Total
       Addressable Market (TAM), Serviceable Available Market (SAM), and
       Serviceable Obtainable Market (SOM).  I have two questions for the
       community:  What SOM is considered attractive to VCs investing in
       startups? Is there a threshold (e.g., $100M, $200M, etc.) that
       investors typically look for?  What percentage of SOM should a
       startup aim to capture within 5 years to be viewed as a good
       investment opportunity?  I'd love to hear from founders, investors,
       or anyone who's been through this journey in healthcare or similar
       industries. Any benchmarks, advice, or resources would be greatly
       appreciated!  Thanks in advance for sharing your insights!
        
       Author : djokester
       Score  : 7 points
       Date   : 2024-12-08 19:53 UTC (3 hours ago)
        
       | cjbenedikt wrote:
       | That's a daunting endevour not sure SOM will cut it. Many tried
       | and failed or had to cut back. Oscar Health springs to mind
       | https://en.m.wikipedia.org/wiki/Oscar_Health#:~:text=Oscar%2....
       | Even the combination of big players called Haven with very deep
       | pockets ( Amazon & Buffett & JPMorgan) eventually flagged.
       | https://www.cnbc.com/2021/01/04/haven-the-amazon-berkshire-j....
       | Not to discourage you but this market is so lukrative for
       | existing participants (hospitals, health care providers etc.)
       | they will fight new ideas tooth and nail. VCs know that.
        
       | dustingetz wrote:
       | Not healthcare specific but generally $100M ARR in 10 years
       | tracks many of the current unicorn darlings, but you're competing
       | with startups of today not 10 years ago so you'll want to figure
       | out a way to get there faster. Clock really starts at the seed,
       | though it really gets serious at the A where you have a board
       | which maybe can fire you. TAM can expand, i think VCs focus more
       | on how you will grow quickly, if you get summarily rejected based
       | on TAM it just means you didn't get very deep into their process
       | 
       | One comp is a HIPAA compliance vendor which took a while to get
       | the first $1M but then grew 10x in a year once they cracked it
        
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       (page generated 2024-12-08 23:01 UTC)