Vertical SaaS

Also called Horizontal SaaS

Software built for one specific industry, dental clinics, construction, restaurants, with deep, tailored features. Horizontal SaaS, by contrast, serves a function across all industries.

Why it matters

Vertical SaaS can win by understanding a niche deeply and owning its workflow, often with less competition and stronger retention than broad horizontal tools. The trade-off is a smaller market, so the niche has to be big enough.

For example

Toast builds software specifically for restaurants, going deep on their exact needs rather than serving every industry like a horizontal tool.

Worth your time

Related terms

SaaS Beachhead Market Switching Costs

Go deeper

See how founders actually handle this on Growing and marketing, part of the Starting Up hub.

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