Boris Wertz of version one ventures writes in TechCrunch that the future of SaaS belongs to vertical solutions. As investors in Mindbody (health and wellness), Catalyst Repository Systems (legal) and Alert Solutions (education)…we agree! His four reasons are:
1. Narrow focus = better products
2. Reach a category leading position faster (with a shout-out to Mindbody!)
3. Better customer acquisition metrics
4. Expansion into the long tail
We’ve long felt that the companies that can crack the SMB nut can create massive amounts of value. There is a huge market of SMBs that is just as hungry for efficiency-enhancing software as the enterprise market. The democratization of IT marches on.
- – Tyler Newton