Vertical SaaS is one of the hottest topics in tech right now 🔥 🔥 🔥
𝗪𝗵𝗮𝘁 𝗶𝘀 𝗶𝘁 𝗮𝗻𝘆𝘄𝗮𝘆? 𝗔𝗻𝗱 𝘄𝗵𝘆 𝗶𝘀 𝘁𝗵𝗲𝗿𝗲 𝗮 𝗵𝘂𝗴𝗲 𝘄𝗮𝘃𝗲? 🌊
𝙑𝙚𝙧𝙩𝙞𝙘𝙖𝙡 𝙎𝙖𝙖𝙎 can best be described as solutions designed for a particular industry or “vertical”. They are tailored to meet the unique requirements and workflows of a specific industry, such as healthcare, finance, automotive, or retail.
𝙃𝙤𝙧𝙞𝙯𝙤𝙣𝙩𝙖𝙡 𝙎𝙖𝙖𝙎 is best described as solutions designed to apply to as many different industries as possible. Think “one size fits all”.
While horizontal SaaS can be a great product that applies to many situations, there are many nuances and specifics that make the “one size fits all” approach fall flat on its face.
S͟o͟ ͟w͟h͟a͟t͟ ͟a͟r͟e͟ ͟s͟o͟m͟e͟ ͟o͟f͟ ͟t͟h͟e͟ ͟b͟e͟n͟e͟f͟i͟t͟s͟ ͟o͟f͟ ͟V͟e͟r͟t͟i͟c͟a͟l͟ ͟S͟a͟a͟S͟:͟
•Improved functionality and efficiency: Vertical SaaS solutions provide specialized features and functionality that are relevant to a specific industry or niche.
•Fewer systems to deal with: More companies can be “all-in-one” solutions for their niche. Businesses don’t have to buy a bunch of different solutions, make them integrate, etc.
•Cost savings: By focusing on a specific industry, vertical SaaS vendors can eliminate the need for costly customization often associated with horizontal SaaS solutions.
•Regulatory and compliance: Vertical SaaS products meet the regulatory and compliance requirements specific to their target industry so that customers can avoid costly violations.
•Accelerated ROI: Vertical SaaS solutions can enhance customer experiences and reduce downtime on manual processes, which accelerates ROI.
W͟h͟a͟t͟ ͟a͟r͟e͟ ͟s͟o͟m͟e͟ ͟e͟x͟a͟m͟p͟l͟e͟s͟ ͟o͟f͟ ͟g͟r͟o͟w͟i͟n͟g͟ ͟v͟e͟r͟t͟i͟c͟a͟l͟ ͟S͟a͟a͟S͟ ͟c͟o͟m͟p͟a͟n͟i͟e͟s͟?͟
Flychain - A suite of financial solutions for healthcare providers
Tailor Brands - Business-in-a-box for e-commerce stores
Trayd - Back office operations for construction companies
ShoBizzy - Staffing for production and entertainment companies
MoeGo - All-in-one solution for pet care businesses
Ease - Business-in-a-box for private practices
If you are building in vertical SaaS, let us know!
Co-Founder at Fiat Growth | GP at Fiat Ventures | SF Business Times 40 under 40
3w👏🏾👏🏾👏🏾