Startup Funding Espresso – How To Choose a Vertical SaaS Niche

How To Choose a Vertical SaaS Niche Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Vertical SaaS is a known business model that narrows the focus to a single application. This reduces the cost of capital to raise and gives the startup the opportunity to go deep on an application. Here's how to choose a vertical SaaS niche. Look for industry segments that are highly fragmented. It works well where market share is not concentrated. Find niches where technology can improve the efficiency of the business. Combining these two factors, one looks for a highly fragmented market that is currently inefficient. The market segment needs to be able to spend on tech efficiency. There needs to be enough money to implement SaaS systems. In prioritizing highly fragmented markets with low current efficiency, one looks to find the largest submarkets. The vertical must be big enough to produce a profitable business. Applying this methodology to each NAIS industry segment category provides a prioritized list of markets to apply vertical SaaS to. Consider these steps in selecting a niche for a vertical SaaS play. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.