Vertical SaaS (VSaaS) companies have been arm-wrestling to become the system of record within a single customer—capturing a merchant’s data and decisions. And we have advocated to go further: own “All the Data” within a single customer.
But why stop there? The real power move isn’t just owning a merchant’s data; it’s integrating and normalizing data across key stakeholders–suppliers, distributors, and customers. Enter what we call the industry ledger: a system of record not just for one business, but for an entire ecosystem. It’s rare, but when done right, it’s one of the strongest positions a VSaaS company can hold—unlocking network effects, deeper moats, and serious revenue upside. More importantly, industry ledgers can solve complex, high-stakes problems where money moves fast, goods and services require coordination, and value chains are still frustratingly fragmented and paper-based. This is our call to action: VSaaS companies should stop thinking like a merchant’s bookkeeper and start thinking like an industry’s ledger.
We see this as the next major evolution of the “Extend through the Value Chain” concept, and it comes in two primary flavors: horizontal and vertical.
In our latest essay, we explore:
- How horizontal industry ledgers are reinventing data co-ops as software
- Why vertical ledgers are emerging in industries with fragmented value chains
- The trust dynamics that separate successful industry ledgers from failed attempts
- Which specific industry conditions are primed for ledger transformation
Access the full essay below to discover why industry ledgers represent "the highest calling a vertical SaaS company can aspire to" and how forward-thinking companies are already making this transition.
We are trying to open-source our thinking 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 here or with the button below!
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