Vertical Software: Think Small to Win Big

In 2013, booking a doctor’s appointment in France was a nightmare. Then Doctolib arrived, transforming healthcare scheduling with a solution built for the industry’s unique needs. Doctolib isn’t alone. From Toast, which revolutionized restaurant operations, to Procore, simplifying construction management, vertical software proves that solving industry-specific challenges can create global leaders. From several years now, Thomas and I have been passionate about these models and have invested in companies like Planity ✂️, Obat 👷, and Worldia 🌏 . Welcome to the era of Vertical Software — tailored tools transforming industries one market at a time. Why is vSaaS thriving, and what’s next? Let’s dive in. 1. Definition of Vertical Software Definition Let’s start by aligning on the definition of Vertical Software. Vertical software (or vSaaS) is designed specifically for a particular industry or market segment. Unlike horizontal software (e.g., Workday or SAP SuccessFactors, used across industries for HR management), vertical software focuses on specialized functionalities tailored to specific sectors, such as healthcare, construction, or hospitality. Source: https://creandum.com/stories/ai-in-b2b-saas/ Industry Examples Global Leaders: Toast (NYSE:TOST) : a restaurant point-of-sale and management system that improves operations, increases sales, and enhances guest experiences. Founded in 2011, Toast generated $4.7 billion in the past 12 months ($1.6 billion ARR with 120k locations) and continues to grow at 29%. Veeva (NYSE:VEEV) : a leading software provider for life sciences, streamlining drug development and commercialization. Founded in 2007, Veeva reached $2.6 billion in revenue LTM, with a growth rate of 15%. Procore (NYSE:PCOR) : A construction management software that simplifies collaboration, communication, and documentation. Founded in 2022, Procore generated $1.1 billion in revenue in the past 12 months, with 17,000 customers and 24% growth. In France as well, Leaders in Vertical Software are emerging: Doctolib (healthcare) : the company stands out as one of the most prominent examples of vertical SaaS in France. Founded in 2013, the company has raised over €800m to date and is projected to generate €350–400 million in revenue, as shared by its CEO, Stanislas Niox-Château, in a recent podcast. Interestingly, despite its significant presence, Doctolib holds only a 30% market share among caregivers in France (and 50% among doctors), highlighting room for further growth. Planity (Beauty) : the leading platform for booking hair and beauty appointments online (€100 million+ raised, 40k+ customers). Zenchef (Restauration) : a comprehensive restaurant management software solution that helps restaurants manage reservations, optimize operations, and enhance customer relationships (€60m raised, 19k+ customers). Obat (Construction) : a SaaS platform for construction professionals, simplifying quotes, invoices, and project management (€18 million raised