By Shawn Davis
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July 9, 2024
Vertical SaaS companies are on a roll. As of the publication of Fractal’s 2023 “ State of Vertical SaaS ” report the total combined market valuation of all Vertical SaaS unicorns stands at $98.2B, compared to $97.4B the year before . These companies can weather uncertainty in the market, while continuing to grow, because they provide meaningful value to their customers. Even more than that, they provide indispensable value to their customers. But what does it even mean to be indispensable?  What does it mean to be “indispensable?” Vertical SaaS hasn’t always been such a hot market. In the early days, investors were understandably concerned about the limited market available to these companies. Could there really be enough tech-savvy laundry operators for a niche product like Cents to survive and, perhaps, even thrive? The answer turned out to be a resounding “Yes!” Businesses, particularly SMBs, love when their solutions are tailored to their exact needs. They especially love when their solutions meet all of their needs. According to a survey by Vcita , 79% of SMB owners are using two or more tools to manage their business yet, among those owners, 90% would prefer to combine those capabilities into just one tool. This is a big deal. Money is not as easy to come by as it once was, especially for small businesses, and spending is tight. In a McKinsey study of 3,500 SMBs , one in four businesses reported that they intend to cut their technology spending by up to 25% in the next 12 to 24 months. The path forward for SMBs, then, is fairly clear; technology consolidation. Replacing multiple tools—and multiple subscriptions—with one single product can reduce overhead, increase efficiency, and cut costs. All even higher priorities than before.