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Venture Deep Dives: Vertical SaaS in the AI Era

The history of vertical SaaS and its relevance in today's AI era

Written by

Peter MacEwan

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1 min

In this series, we hone in on a burgeoning VC sector with one of our ~50 investing experts. This week, Managing Partner Catherine Lu delves into the budding industry of vertical SaaS. Unlike horizontal SaaS — such as DropBox, which serves a broad range of industries or markets — vertical SaaS offerings are more specialized, providing features and capabilities that are tailored to a specific industry.

AV’s Deep Dive into Vertical SaaS

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Toast for the restaurant industry, Procore for the construction industry, and Viva for the life sciences and pharmaceutical industry are only a few examples of successful vertical SaaS companies.

What sets these companies apart from other SaaS companies is their use of application AI. At Alumni Ventures, we notice that vertical SaaS plus AI applications tend to have fewer competitors through unique data advantages that are more easily and effectively integrated into workflows and a more focused go-to-market strategy.

In this Deep Dive, Alumni Ventures Managing Partner Catherine Lu explains how vertical SaaS companies that embrace the AI revolution are prime investment choices for VCs.

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Written by

Peter MacEwan

Peter has startup experience in both the nonprofit and business sectors, a BA from Wesleyan University, and an MBA from The Wharton School. Peter developed expertise building teams and strategic planning in the San Francisco Bay Area, driving growth across multiple seed- and early-stage companies (with many nights spent as informal adviser to a network of entrepreneurs). Peter has a passion for social impact and loves working with people who love what they do and strive to get better at it.

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