How Nate Baker Built Qualia and Fractal to Win in Vertical AI | Ep 14

In this episode of Verticals, Luke Sophinos and Nic Poulos sit down with Nate Baker, founder and CEO of Qualia and creator of Fractal, to unpack one of the most controversial questions in modern SaaS: Is TAM actually too small - or are we asking the wrong question entirely? Nate has built one of the most important systems of record in real estate, serving over 500,000 professionals, and has helped launch more than 150 vertical SaaS companies through Fractal. In this conversation, he challenges the way founders and VCs think about market size, moats, and defensibility in the age of AI. We dive into systems of record vs point solutions, why vertical SaaS can monopolize entire markets, and how LLMs are changing what’s possible in software - not just automating work, but replacing it. This episode is a deep, operator-level discussion on how vertical AI reshapes TAM, why speed now beats perfection, and what founders should prioritize if they’re building in regulated, complex industries. Whether you’re a founder, operator, or investor building or backing vertical SaaS or vertical AI, this episode will fundamentally change how you think about market size, product strategy, and long-term advantage. New episodes drop every Wednesday.