I’m going to say something that might make some of you uncomfortable. The golden age of horizontal SaaS is over. Dead. Finished.
For years, the playbook was simple: build a tool that does a little bit of everything for everyone. Think of the giants – they aimed to be the Swiss Army knife for businesses. And for a while, it worked. But the ground has shifted. Today, if you’re building a SaaS company, the mantra is “niche-down or die.”
I’ve seen this movie before. With my first company, MovieLaLa, we were trying to be everything to movie fans. It wasn’t until we focused on a specific problem – helping studios connect with their biggest fans – that we found our footing and, eventually, a successful exit to Gfycat. My next venture, RemoteTeam, which was acquired by Gusto, was born from a hyper-specific need I saw in the market for managing remote teams. We didn’t try to solve all of HR. We solved one big, painful problem for a very specific type of company.
This isn’t just my opinion. It’s a reality I see playing out across the 200+ investments I’ve made in companies like Anthropic, OpenAI, and Scale AI. The winners are those who go deep, not wide. They build for a specific industry, a specific workflow, a specific customer who has been ignored by the big players.
The End of an Era: Why Horizontal SaaS is Fading
The big platforms are bloated. They have to be. To serve everyone, they pile on feature after feature, creating a clunky, one-size-fits-none experience. Their users are drowning in a sea of buttons and menus they’ll never use, all while paying for the privilege.
Meanwhile, their APIs, once a promise of endless customization, have become a trap. They are often poorly documented, constantly changing, and require a team of engineers just to maintain the integration. It’s a hidden cost that drains resources and kills agility.
This is where you, the vertical SaaS founder, come in. You can build a solution that is 10x better for a specific industry because you’re not trying to be everything to everyone. You can create a user experience that feels like it was designed by someone who actually understands the user’s job.
Finding Your Niche: Where the Gold is Hidden
So how do you find your niche? It’s not about throwing darts at a board. It’s about finding a group of people with a painful, expensive problem that no one is solving well.
Here’s my process:
- Follow the money. Look for industries with high-value transactions and complex workflows. Think construction, manufacturing, logistics, or specialized healthcare. These are often old-school industries that are still running on spreadsheets and outdated software.
- Find the pain. Talk to people in these industries. Ask them what keeps them up at night. What’s the most frustrating part of their job? What tasks are they still doing manually that they wish they could automate?
- Look for the “good enough” solutions. Often, you’ll find that people are using a combination of tools that are “good enough” but not great. This is your opportunity. If you can build a solution that is significantly better, they will switch.
Don’t be afraid to pick a small niche. It’s better to be a big fish in a small pond than a small fish in a big one. You can always expand later. The key is to start with a deep understanding of a specific customer and their problems.
Winning Your First 100 Customers: The Grind is Real
Once you’ve found your niche and built a product, it’s time to get your first 100 customers. This is where the real work begins. There are no silver bullets here. It’s a grind. But it’s a grind that I love.
Here’s what worked for me:
- Go where your customers are. In the early days of RemoteTeam, I spent hours in online communities for remote workers. I wasn’t there to sell. I was there to listen and to help. I answered questions, offered advice, and built relationships. When we finally launched, we had a waiting list of people who were eager to try our product.
- Do things that don’t scale. I personally onboarded our first 50 customers. I gave them my personal cell phone number. I wanted them to feel like they were a part of our team. This level of service is impossible to maintain as you grow, but it’s essential in the beginning. It’s how you build a loyal following of evangelists.
- Create content that your customers actually want to read. Forget the generic blog posts about “5 ways to be more productive.” Instead, write about the specific problems that your customers are facing. Create templates, checklists, and guides that they can use in their daily work. Become the go-to resource for your niche.
Your first 100 customers are not just a number. They are your co-creators. They will give you the feedback you need to build a great product. They will be your biggest champions. And they will be the foundation upon which you build a successful company.
The Vertical SaaS Revolution is Here
The future of SaaS is vertical. It’s about going deep, not wide. It’s about solving real problems for real people. It’s about building a business that is loved by its customers.
So if you’re a founder who is passionate about a specific industry, now is your time. The giants are vulnerable. The opportunities are massive. Go find your niche, build a great product, and win your first 100 customers. The world is waiting for you.
Frequently Asked Questions
How do I measure success with this approach?
Pick one or two metrics that directly tie to your goal and track them weekly. Vanity metrics like page views or follower counts rarely matter. Focus on metrics that reflect real engagement or revenue impact.
What are the most common mistakes when finding and win your first 100 customers for your vertical saas?
The biggest mistake I see is overcomplicating things early on. Start with the simplest version that works, get real feedback, and iterate from there. Another common trap is copying what worked for someone else without understanding the context behind their decisions.
How long does it take to find and win your first 100 customers for your vertical saas?
The timeline varies depending on your starting point and resources. For most founders, expect 2-4 weeks for initial setup and 2-3 months to see meaningful results. I've seen teams move faster when they focus on one thing at a time rather than trying to do everything at once.
What tools do I need to get started?
Start with the basics. You don't need expensive software or fancy tools. A spreadsheet, a note-taking app, and direct access to your customers will get you further than any enterprise platform. Add tools only when you hit a specific bottleneck.