ExtendConsumer Extensions
For a VSV, the consensus extensions are towards suppliers or employees. It is much rarer for a VSV to extend towards the consumer, but doing so is the hero’s path – unlocking TAM and blocking competitors.
Extraordinary returns are always found in intimidating opportunities, if you are brave enough to make the move. For a Vertical SaaS Vendor (VSV), the consensus extensions are towards suppliers or employees. It is much rarer for a VSV to extend towards the consumer.
I would argue that the consumer extension is the hero’s path: it is difficult and elusive, but unlocks massive amounts of TAM and blocks competitors. Tilting at windmills? Maybe. But I believe that every leading VSV should take a hard look at consumer for four reasons:
The TL;DR is that a consumer extension is the most lucrative extension, while also warding off the only existential threat.
At Tidemark, we try to open-source our thinking as much as possible to help founders win; however, as investors, we can’t give everything away in public. If you’re an operator or founder, you can request access to the rest of this piece below.
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