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Fintech Scales Vertical SaaS

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Today, about 90% of public SaaS companies and the 2019 Forbes Cloud 100 have subscription-based revenue models. Now new fintech infrastructure companies have made it possible for SaaS businesses to add financial services alongside their core software product. By adding fintech, SaaS businesses can increase revenue per customer by 2-5x* and open up new SaaS markets that previously may not have been accessible due to a smaller software market or inefficient customer acquisition. This wave is happening first in vertical markets (meaning the market around a specific industry, such as construction or fitness). Vertical software markets tend to have winner-take-most dynamics, where the vertical SaaS business that can best serve the needs of a specific industry often becomes the dominant vertical solution and can sell both software and financial solutions to their core customer base. Moreover, while early vertical SaaS companies – Mindbody, Toast, Shopify – typically started by reselling fina

Fintech Scales Vertical SaaS | Andreessen Horowitz Fintech Fintech Scales Vertical SaaS Kristina Shen, Kimberly Tan, Seema Amble, and Angela Strange Posted August 4, 2020 Available in Español Português Subscribe Share Share Email X LinkedIn Facebook Hacker News WhatsApp Flipboard Reddit Share Share Email X LinkedIn Facebook Hacker News WhatsApp Flipboard Reddit Today, about 90% of public SaaS companies and the 2019 Forbes Cloud 100 have subscription-based revenue models. Now new fintech infrastructure companies have made it possible for SaaS businesses to add financial services al

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