Editor's note: At Tidemark, we’ve been arguing for years that a Vertical SaaS Vendor (VSV) should seek to first own the control point and then expand to adjacent products that build on that privileged position. Those expansions could include payments, payroll, or insurance.
However, what is challenging is actually executing this strategy. Sure, you can just use someone’s API to slap an embedded product on top of your control point, but doing that results in minimal difference to a company's growth prospects. It takes real thought to launch the product, determine when/how to involve sales, etc.
We heard from multiple founders that they want more detail on how to implement insurance, so we’ve brought in a guest writer to explain how it all works. Cole Riccardi is the founder and CEO of Authentic, an embedded insurance platform that lets a VSV easily build and sell insurance to its merchants. Authentic has helped companies like Mindbody launch insurance offerings. In this piece, Cole discusses what’s required to build a successful insurance expansion product sales motion and what kind of revenue a VSV can expect from adding Authentic’s product. Please enjoy!
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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