I recently published a market map of the vertical saas ecosystem with Meera Clark and got a ton of great questions and feedback.
In this post I highlight the segments within the larger vertical saas market to tease out nuances and exciting trends in this space. Click on the video for the full take and check out the highlights below.
There are many ways to segment the vertical saas market. At the highest level, we ultimately decided to do so based on the industries themselves that they're transforming. Below I’ll walk through each of the segments in a bit more d etail.
Business Products and Services
FBusiness products and services encompasses workflow products selling to other businesses. For example, subsectors include commercial construction, freight and logistics and legal services. Procore is a great example of a successful business in this area. It's a product that enables general contractors to better manage their projects.
Consumer Products and Services
Next up is consumer products and services. These products enable businesses that serve consumers. Examples include beauty and wellness, e-commerce, restaurants, etc.. Toast is a great example here. It enables restaurants to better manage their business, collect payments, payroll, and more.
Materials and Resources
These companies service, agriculture, metals, etc.. FarmRaise, for example, enables farms to better track their revenue and expenses and leverage that data to access grants.
Financial Services
Financial services include accounting, insurance and more. Unit21, for example, enables fraud and compliance teams to better manage their AML processes.
Energy
Aurora Solar is a great example of a vertical saas platform in the energy space. It enables solar installers to better manage their pipeline and plan out their projects.
Healthcare
Last but not least is healthcare, which includes services, testing, pharma and more. Epic is electronic medical records or EMR that owns more than 30% of the market and is a great example of how much of a market a vertical saas company can win.
Check out the previous episodes if you haven’t yet:
Vertical SaaS Market Deep Dive (Video Series Part 10)