Vertical SaaS is cloud software built specifically for one industry, like healthcare, construction, or restaurants.

Instead of generic tools that work for any business, vertical SaaS includes features that match how a specific industry actually operates. A construction platform might have built-in permitting workflows and safety compliance tracking. A healthcare app might handle HIPAA compliance and insurance billing out of the box.

Builders often start with vertical SaaS when they spot an underserved niche where generic tools fall short. You can charge more because you're solving real industry problems, not just offering another project management tool. Companies like Toast (restaurants) and Procore (construction) built billion-dollar businesses this way.

The tradeoff: smaller addressable market, but way less competition and customers who actually need what you built. Most vertical SaaS companies add embedded payments or lending to boost revenue per customer.