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Vertical SaaS: Now with AI Inside | Andreessen Horowitz

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In 2020, we wrote about how fintech scales vertical SaaS and noted that by adding fintech, SaaS businesses can increase revenue per customer by 2-5x and open up new SaaS markets that were previously inaccessible due to market size or customer acquisition cost. Four years later, vertical SaaS (VSaaS) is scaling once again, but now it’s for a different reason: artificial intelligence. In this post, we look at how AI is increasing VSaaS revenue per customer by enabling vertical SaaS companies to take on tasks previously too complex for software. With AI, many customers of VSaaS can dramatically reduce internal and external labor spend on sales, marketing, customer service, operations, and finance. (We’ll look at how AI is opening new markets — or making existing ones more attractive — in our next post). Vertical software markets tend to have winner-take-most dynamics, where the vertical SaaS business that best serves the needs of a specific industry often becomes the dominant vertical sol

Vertical SaaS: Now with AI Inside | Andreessen Horowitz Enterprise Vertical SaaS: Now with AI Inside Angela Strange and James da Costa Posted September 20, 2024 Subscribe Share Share Email X LinkedIn Facebook Hacker News WhatsApp Flipboard Reddit Share Share Email X LinkedIn Facebook Hacker News WhatsApp Flipboard Reddit This is the first installment of a three-part series on AI Inside Vertical SaaS. In 2020, we wrote about how fintech scales vertical SaaS and noted that by adding fintech, SaaS businesses can increase revenue per customer by 2-5x and open up new SaaS markets that were previous

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