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.
