Vertical SaaS with AI
Years ago, businesses started to add fintech to their services and thus scaled their offering vertically. AI is now supercharging this vertical integration, allowing businesses to multiply the value they can offer per customer. A16Z has a nice analysis of this idea:
“In this newsletter, we look at how AI is increasing VSaaS revenue per customer by enabling vertical SaaS companies to take on tasks previously too complex for software. With AI, many VSaaS customers can dramatically reduce internal and external labor costs in sales, marketing, customer service, operations, and finance. (We’ll look at how AI is opening new markets — or making existing ones more attractive — in a future post).”
