Want to figure out if you have a vertical or horizontal startup? đ¤
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People often ask me and Robert Kaminski:
âł "What do you mean by 'horizontal' startups?"
To understand what a HORIZONTAL SaaS company is,
it's helpful to first understand what a VERTICAL SaaS company is.
1ď¸âŁ Vertical SaaS Companies
â a product focused on helping one specific persona, company type, and/or industry in one or multiple ways
â the product capabilities address different problems that arise in different contexts for that particular segment
â check out the picture to see the example of
Procore Technologies, a product suite built for construction companies
â Note* = you can also be a verticalized company built around a specific ROLE (if that role doesn't really change across industries)
âł for example, if you made a product for "accountants," it would be a vertical SaaS even if those accountants were in different types of companies.
2ď¸âŁ Horizontal SaaS Companies
â these products serve a variety of personas, company types, and industries
â however, each of these different market segments shares the same context and problem
â the horizontal product solves this common problem with the same product capability
â check out the example of Calendly below
Ben Wilentz
Founder, Stealth Startup