Industry-Focused Software Companies Get To Product-Market Fit Faster

by | Nov 6, 2020

Industry-focused software startups have a much better chance of getting to product-market fit than other startups.

Vertical software companies focus on a particular industry, like dermatologists, childcare centers, insurance agencies, independent physical therapy businesses, big banks, or universities.

They don’t sell to every business of a certain size, unlike horizontal software companies. They sell to 1-5% of all businesses. Just veterinarians. Just hotels.

They started with a known customer with a specific problem. They had a very specific “Who” before they built a specific “What” to solve it.

H1 Header – Industry-focused software companies get to product-market fit faster

They started with a known customer with a specific problem. They had a very specific “Who” before they built a specific “What” to solve it.

H2 Header – Industry-focused software companies get to product-market fit faster

They started with a known customer with a specific problem. They had a very specific “Who” before they built a specific “What” to solve it.

H3 Header – Industry-focused software companies get to product-market fit faster

They started with a known customer with a specific problem. They had a very specific “Who” before they built a specific “What” to solve it.

H4 Header – Industry-focused software companies get to product-market fit faster

They started with a known link to another website  with a specific problem. They had a very specific “Who” before they built a specific “What” to solve it.

  • This is an example of a bullet in the new blog post
  • This is another example of a bullet in a blog post that should span multiple lines and go on a lot longer than the first bullet.
  • This is another example of a bullet in a blog post that should span multiple lines and goes on a lot longer than the first bullet.

Industry-agnostic companies start with a less-specific “What” and a more general “Who,” which is very different.

Both approaches can work just fine to create companies.

But the odds of PMF success are higher with industry software startups than horizontal startups.

Vertical SaaS startups are just more likely to make an amazing solution that makes their early customers very happy.

This means that the odds of founders getting paid back on their investment with a successful exit are actually higher in vertical tech startups.

Verticals are like base hits with better odds and VC-funded unicorns are the grand slams with higher returns.

Greg Head posted this on LinkedIn on November 6, 2020.

Check out the comments and join the discussion on LinkedIn.

Related Posts

Why Specialists Will Beat Generalists in AI-Powered SaaS

Vertical software used to have a TAM problem for VC investors. But now it doesn't in many big markets, or at least that's the new theory. The TAM expander is agents that do work instead of people. The labor market is 50X bigger than the ...

From $1M in Debt to $5M ARR: A Bootstrapped SaaS Story

Practical founder success stories are always improbable, but a few are also ironic. Josh Allen is the founder and CEO of Tratta software for debt collection agencies and creditor rights law firms that gives consumers self-service payment ...
No results found.