For more than a decade, customers spent their software budget procuring vertical SaaS products. ACVs, or annual contract values, were modest, customer acquisition cost had to stay below a ceiling, and the resulting go-to-market playbook was product-led growth, SDR-led and content-driven. With AI, many products are no longer SaaS but usage and outcomes based. They are replacing labor, not software. At my investment firm, Defy, we call this new category of companies vertical AI. Vertical AI spend doesn't just come from a customer's software budget. It often comes out of headcount as well, a much larger line item. As a result, ACVs have jumped meaningfully to 6- and 7-figure deals. I've written before about how AI opened up distribution for vertical SaaS, and how the value framing shifted from subscription pricing to labor substitution economics. As ACVs have grown in vertical AI, the go-to-market motion is changing too. We've explored tactics to drive a more efficient sales process....
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