473. The Future of AI is Vertical, Why Vertical TAMs are Getting Exponentially Larger, and Lessons from the Sector Giants that Lead to Dominance (Alexander Niehenke)

The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified · Mar 10, 2025 · 42m

Alexander Niehenke of Scale Venture Partners joins Nick to discuss The Future of AI is Vertical, Why Vertical TAMs are Getting Exponentially Larger, and Lessons from the Sector Giants that Lead to Dominance. In this episode we cover:

Historical Reasons for Horizontal SaaS Success

Shift Towards Vertical SaaS Solutions

Unfair Advantages of Vertical AI Solutions

Lessons for Modern Founders

Expansion Strategies for Vertical Startups

Talent Dilution and Competitive Moats

VC Diligence and Founder Evaluation

Regulatory Risk and Investment Decisions

Motivation and Future of Venture Capital

Guest…