Vertical SaaS targets the workflow of a single industry deeply, often layering payments, capital, and embedded fintech on top of the core software. Examples include Toast (restaurants), ServiceTitan (home services), Veeva (life sciences), and Procore (construction).
The vertical motion typically wins on deeper workflow fit, higher switching costs, and the ability to monetize multiple revenue lines (software + payments + financing). The trade-off is a smaller TAM than horizontal SaaS, requiring the company to dominate its category to scale.