Total Addressable Market (TAM) Insights: The TAM for global freelancing and neo-banking platforms is massive, with two distinct calculations presenting considerable opportunities (see our calculations in the spreadsheet below this narrative)

• Option 1: Broad View - Encompassing a wider range of freelancers globally, including those in lower-income countries, the TAM stands at approximately $2.2 trillion. This figure aligns with the expansive nature of freelance work across various sectors.
• Option 2: Focused on Knowledge Work - Narrowing down to knowledge workers, the TAM is around $699.56 billion. This more conservative estimate still represents a substantial market, particularly relevant to Wedo.ai's target demographic.

Self-Employed Knowledge Workers:

• The global population of knowledge workers is estimated at 1 billion, with self-employed individuals constituting about 46.4% of this group. This subset forms a significant portion of Wedo.ai's target market.

Income and Fee Potential:

• The average income per freelancer per year is estimated at $45,360, contributing to a global freelancing income of up to $21.05 trillion for knowledge workers.
• Considering transaction fees and foreign exchange (FX) fees, Wedo.ai could tap into additional revenue streams, with TAMs for these fees in the hundreds of billions.

Serviceable Available Market (SAM):

• Focusing on the US, UK, and EU markets, the SAM is estimated at $154.22 billion. This substantial market offers ample opportunities for growth and expansion, especially in developed economies where freelancing and neo-banking are becoming increasingly prevalent.

Serviceable Obtainable Market (SOM):

• Projected to achieve a market share of 5% by Year 5, Wedo.ai aims to capture a significant portion of the SAM. The calculated SOM reflects ambitious yet achievable targets, considering the platform's unique offerings and market trends.

Market Growth and CAGR:

• The freelancing platforms and neobanking sectors are experiencing rapid growth, with Compound Annual Growth Rates (CAGR) of 15.02% and 43.52%, respectively. Wedo.ai is well-positioned to capitalize on these growing markets.

Strategic Implications for Wedo.ai:

1. Targeted Market Penetration: Focusing on knowledge workers, particularly in the US, UK with EU to follow, aligns with the substantial SAM and offers a clear pathway to scaling the business.
2. Diversified Revenue Streams: The potential for earnings from transactions and FX fees adds significant value to Wedo.ai's business model, enhancing its financial stability.
3. Adapting to Market Dynamics: Rapid market growth demands continuous innovation and agility. Wedo.ai's commitment to AI and technological advancement positions it well to adapt and thrive.

<aside> 💡 The freelancing and neobanking markets present vast opportunities for Wedo.ai. With a strategic focus on knowledge workers and leveraging its unique platform capabilities, Wedo.ai is poised to make a significant impact in these rapidly growing markets.

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https://docs.google.com/spreadsheets/d/1oYjRDjMewOfabfRgDiT48YL1v87ifqWUol7L8ab2WD4/edit?usp=sharing

How we calculated the market size:

Total Addressable Market (TAM):

1. Global Context: The calculation starts with the global population, estimated at 8 billion people. Focusing on the employed segment, which is about 3.32 billion, the analysis narrows down to knowledge workers, estimated at 1 billion globally.
2. Freelance Focus: From these knowledge workers, a significant percentage, 46.4%, are self-employed, leading to a figure of approximately 464 million self-employed knowledge workers worldwide.
3. Income Estimations: The average income per freelancer is derived from global averages, which, along with the number of billable hours and rates, contribute to calculating the total income potential from freelancers.
4. SaaS and Fee Potential: For SaaS income, the number of freelancers likely to convert into paying customers is considered, alongside an estimated annual income per freelancer. Transaction and FX fees are calculated based on global freelancing income and average transaction fees.

Serviceable Available Market (SAM):

1. Regional Focus: The SAM focuses on specific regions - the US, UK, and EU - with their respective numbers of freelancers.
2. Market Size: By applying the same principles of income and fee calculations as in TAM, but limited to these regions, the SAM is derived, representing the total market size that Wedo.ai can serve in these targeted areas.

Serviceable Obtainable Market (SOM):

1. Market Share Goals: The SOM calculation is based on the percentage of SAM that Wedo.ai aims to capture. It’s a more realistic target, factoring in the competitive landscape and Wedo.ai's capacity to acquire market share.
2. Growth Projections: Using the projected market share (e.g., 5% by Year 5) and factoring in the Compound Annual Growth Rates (CAGR) for freelancing platforms and neobanking, the SOM reflects Wedo.ai's expected portion of the SAM over a specific timeframe.

Key Assumptions: