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A defensible market size is the difference between a thesis that survives the investment committee and one that dies there.

Top-down vs bottom-up sizing

Top-down sizing starts from a published industry number and applies a percentage. It is fast, cheap, and uncontested because it is uncontestable. Bottom-up sizing starts from segments, account counts, willingness-to-pay and attach rates, and assembles the market from the unit of the buyer up. The first is a slide. The second is a defensible argument.

Every Critical Deal market sizing engagement is bottom-up. We will use top-down numbers as sanity checks, but they are never the base case.

What we model

  • Segment map. Every segment named, with its firmographic and behavioural definition.
  • Account counts. Per segment, per geography, per maturity stage.
  • Willingness-to-pay. Tested against actual buyer interviews, not benchmarked from comparable categories.
  • Attach and adoption rates. What percentage of the segment is buying today, what the trajectory looks like, and how to read the leading indicators.
  • Competitive share assumption. Realistic share to win inside the SOM window, with the assumptions named explicitly.
  • Sensitivity. A range, not a point. Every assumption that moves the number by more than 5% gets its own sensitivity test.

What you get

  • A TAM/SAM/SOM model built in the spreadsheet of your choice, shipped to you (not locked in our system).
  • A source-trail document: every assumption mapped to a source, with the methodology shown.
  • A sensitivity table showing the impact of every material assumption.
  • A board-ready summary: the verdict, the size, the range, the confidence level.
  • Buyer interview transcripts where willingness-to-pay or attach was tested.
How we run it

Five steps to a defensible market size.

  1. Decision frame.

    What's the size being used for? Fundraise, acquisition, launch, IC vote, the use case sets the bar.

  2. Segment map.

    Every segment named, with a clean firmographic and behavioural definition.

  3. Bottom-up build.

    Account counts, willingness-to-pay, attach rates, competitive share. Modelled per segment, per geography.

  4. Primary validation.

    Where the model rests on willingness-to-pay or behavioural change, we go and test it with buyer interviews.

  5. Sensitivity and verdict.

    The number is reported as a range, with the assumptions that move it most flagged. The verdict states confidence level.

Top-down sizing is uncontested because it's uncontestable.
Why we don't accept top-down numbers as the base case.
Frequently asked

Market sizing, questions.

What is bottom-up market sizing?

Bottom-up market sizing builds a market estimate from the unit of the buyer, segments, account counts, willingness-to-pay, attach rates, rather than from a top-down industry report. It is what investment committees and acquisition teams actually defend.

Why not just use a research report?

Top-down industry numbers are useful as sanity checks. They are not defensible inside a board pack or an investment committee, they have no audit trail back to specific buyers or segments. Bottom-up sizing does.

What's the difference between TAM, SAM and SOM?

TAM (Total Addressable Market) is the total revenue available if you served every possible buyer. SAM (Serviceable Available Market) is the slice you can realistically serve with your current product, segment and geography. SOM (Serviceable Obtainable Market) is the slice you can realistically win within a defined window, typically 12 to 36 months.

Who needs market sizing?

Founders raising; CFOs reforecasting; corporate development teams validating an acquisition thesis; product teams scoping new segments; investors validating a thesis or sizing a portfolio bet.

How long does it take?

Standard sizing: 3–5 weeks. Multi-segment or multi-geography: 5–8 weeks. M&A-grade sizing inside a diligence timeline: scoped to the deal window.

What data does it use?

Public firmographic data, paid B2B datasets, your own CRM and pipeline data, industry filings, expert interviews, and primary buyer interviews where willingness-to-pay or attach rate needs to be tested.

Will the numbers survive scrutiny?

The bar we hold is: would an acquirer's diligence room defend this number? Every line of the model has an explicit source, assumption and sensitivity range. The model is shipped to clients, not just the summary.

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