Article · 15 min read

Vertical SaaS: Now with AI Inside

Angela Strange and James da Costa · Andreessen Horowitz Free Intermediate

This explains why niches once dismissed as too small (laundromats, vets, clinics) become real businesses when AI absorbs the labor-heavy steps and drops acquisition cost. That is the economics shift at the center of your question, shown concretely. Use it to see how a specific painful job in a small market turns into an opportunity.

  • AI reopens niches that were too small to serve before
  • Automating rote steps lifts revenue and cuts acquisition cost
  • The product feels like leverage, not another dashboard

The question it answers

  1. How do I spot an idea that AI just made possible that was not viable two years ago?

Read with it

  1. The single best thing ever written on customer conversations. It teaches you to ask about the customer's life and past... momtestbook.com Book · ~130 pages The Mom Test Rob Fitzpatrick
  2. The definitive essay on where good ideas come from: notice problems you personally have, don't force it. Use it as the lens for... paulgraham.com Essay · ~20 min read How to Get Startup Ideas Paul Graham
  3. 200+ candid conversations with Indian founders and investors on how they actually found their idea, spotted a trend, and... Apple Podcasts Podcast · podcast series (45-90 min episodes) The Neon Show (formerly 100x Entrepreneur) Siddhartha Ahluwalia
  4. YC's partners walk through concrete business models that were not viable before large language models: full-stack law firms,... Y Combinator (Lightcone Podcast) Video · ~45 min Startup Ideas You Can Now Build With AI (Lightcone Podcast) Garry Tan, Harj Taggar, Diana Hu, Jared Friedman
  5. Elad Gil is one of the most trusted operators-turned-investors on this exact question, and this piece cuts through the wrapper... Elad Gil (Elad Blog) Essay · ~12 min read Defensibility & Competition Elad Gil
  6. A living list of problem areas YC actively wants founders to tackle, useful as raw material and as a way to spot where the... Y Combinator Tool · Browse Requests for Startups Y Combinator
eChai Partner Brands The partnership →