Fintech Scales Vertical SaaS | Andreessen Horowitz

Just as the internet and web browser unlocked the previous shift, the new ease of embedding payments, lending, and other financial products will allow industry-specific software platforms (Vertical SaaS) to destroy multi-market/horizontal solutions like Salesforce. Ever smaller niches will be able to sustain venture-scale software companies because... See more

- Integrated payments and lending are unlocking new business models for software companies and vastly improving the user experience.

Ultimately, leading players want to take over the rest of the finance space leveraging their user base, technology and brand. Payment companies doing loans. Payroll providers starting to act like aggregators of services. Accounting solutions doing planning. Expense management platforms doing procurement.

As the ROI of SG&A spend becomes more predictable, a non-VC financial layer will emerge within Silicon Valley, similarly helping to fuel its growth. This capital layer can help partially compensate for the slowing market-based growth tailwinds. This suite of services will benefit from a tech-specific approach: real-time debt offerings based on oper... See more