Segment-specific startups frequently outperform their horizontal counterparts and do so with greater efficiency, lower churn, and simpler GTM motions. While some investors see these markets as too small, leading fields like insurance, supply chain & logistics, construction, and healthcare represent huge portions of the economy. Each contains many billion-dollar corporations with hundreds of thousands of employees.
The integration of AI into workflows presents a major opportunity across these vertical techstacks, potentially acting as a forcing factor in allowing new entrants into hard-to-penetrate industries. We’ve seen a key element of success in segment-specific startups lie in founder-market fit, based on our experience with entrenched founders driving real impact—and real revenue.