Magazine Article | February 1, 2019

What It Takes To Dominate A Vertical Market

Source: Software Executive magazine

By Abby Sorensen, Chief Editor

When Jennifer Goldsmith joined Veeva Systems in 2010, the company had one product line and fewer than 60 employees. Today it is approaching $1 billion in revenue thanks to its strong partnership with the life sciences industry.

Dropbox. HubSpot. Workday. Twilio. Domo. Box. These are six of the darlings of the SaaS world. Just about anyone who regularly reads Software Executive can rattle off a loose description of the kinds of software each one develops. Brand recognition aside, these companies have some key traits in common. Each was founded between 2005 and 2011. Each is publicly traded, with every IPO coming after 2012. Each has raised an astonishing amount of funding (a mind-boggling total of $3,287,600,000, to be exact, or an average of nearly $550 million per company). Each of these six companies has an enormous addressable market because of the horizontal software applications they develop. The list of public, horizontal software companies is likely to grow soon, especially if the speculation about Slack’s IPO comes to fruition in 2019. Slack has piled up $1.2 billion in funding since being founded in 2007.