Vertical SaaS is a venture sector in the tech space.

It narrows the scope of the startup to a single application.

Vertical SaaS has many advantages as follows:

It’s easier to position in the market and message to the customer.

By narrowing the scope, the startup can dive deeper into the application, providing a better solution.

Distribution can be easier as it focuses on one vertical.

Vertical SaaS is highly specialized for the customer’s needs.

There’s less competition because the overall space is smaller.

Vertical SaaS requires less capital to launch and scale the business.

The key to a successful vertical SaaS business is to ensure there’s a large enough market. 

If the total available market is too small, it will be difficult to achieve a venture outcome.

The founder needs to be highly experienced in the sector.

For many applications, a vertical SaaS approach will yield a successful startup.

Consider focusing your startup on a specific sector.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.