Greg Isenberg

The YCs of the world are going to focus on these big, big categories.

Insurance, real estate, logistics, elder care, legal, healthcare, sales.

I'm not suggesting that you go and do that.

I think that you should pick a wedge in a sub-niche

of one of these vertical categories, start there and then expand from there.

There's going to be so much funding into these big categories, so you kind of want to just pick something that has a little less competition.

But I do think that there's a lot of opportunity here.

So how do you think about vertical SaaS versus vertical AI?

So this is something I'm thinking a lot about.

Vertical SaaS captures a fraction of IT spend.

You're generally selling software licenses.

Humans are operating the tool.

And you're looking at the $10 to $100 million outcome, usually.

Of course, there's exceptions to that rule.

Vertical AI taps directly into labor P&L.

What I mean by that is you're building basically an agent as a software.

Because you're doing that, the thing that companies are hiring you to do is what they would hire human beings to do.

The actual market for vertical AI is bigger than vertical SaaS.

You're going to want to think about selling outcomes and results,

Agents are doing the work.