RESEARCH SECTOR
Vertical SaaS
Software as a Service (SaaS) tailored to specific industries offers unique value propositions by addressing niche market needs. We focus on vertical SaaS solutions that solve industry-specific challenges, driving efficiency and innovation.
Discover the latest trends and technologies shaping vertical SaaS
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Several verticals outside of healthcare are large enough to support – and unique enough to need – sector-specific software. These applications generally address industry-specific workflows.
The financial, insurance, government, legal, real estate, restaurant, home service, and automotive and trucking verticals have proved to be large enough to support large publicly traded SaaS companies. Many smaller verticals support a broad range of smaller privately held SaaS companies.
It’s expensive for a company to develop and maintain software that addresses its needs that are specific to its industry. While these industry-specific needs can’t be addressed by mass-market solutions, vertical-focused SaaS solutions developed and maintained by a third party can be an attractive option. These solutions address most, if not all their target verticals’ unique needs at a compelling price by leveraging the economies of scale enabled by narrower, but still substantial addressable markets.
First Analysis has invested in several privately held vertical SaaS application companies, and we understand how these applications need to be differentiated from mass-market applications to succeed.
Our sector leaders
Matthew Nicklin
Managing Director, Office of the President
James Macdonald
Managing Director
Corey Greendale
Managing Director, Office of the President
Howard Smith
Managing Director, Office of the President
Richard Conklin
Managing Director
Andrew Walsh
Managing Director
David Gearhart
Senior Vice President
Terry Kiwala
Vice PresidentFeatured insights and research reports
SaaS valuations jump despite little change in growth outlook
James Macdonald
Growth expected to slow further; group underperforms market
James Macdonald
SaaS growth outlook higher, but valuations little changed
James Macdonald
Valuations rise again with modest SaaS stock appreciation
James Macdonald
Valuations reverse lower, 2025 growth expectations also down
James Macdonald
SaaS companies expect growth to slow further in 2024
James Macdonald
Venture capital activities
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Relevant advisory transactions
Exclusive financial advisor
Club Automation has been sold to Daxko
First Analysis acted as the exclusive financial advisor in the sale of Club Automation, a leading provider of web-based member management software for gyms and health clubs. First Analysis provided advisory expertise to Club Automation throughout the transaction, including preparation, positioning, due diligence and negotiation.
About Club Automation:
Club Automation was a leading provider of health club management software. Originally designed as a tennis scheduling tool, the Club Automation solution set expanded into a comprehensive front desk, CRM, billing, payroll, scheduling, text messaging and reporting solution set. Health clubs were better able to grow revenue, reduce costs, and engage both current and potential customers.
About Daxco:
Daxko delivers comprehensive technology and payment solutions and experienced services to the member-based health and wellness market. Most recently, the company expanded its portfolio to offer digital marketing services and full-service billing to health clubs, boutique fitness studios, campus recreation facilities, integrated wellness centers, YMCAs, and JCCs. Since 1998, Daxko has grown to serve customers spanning 58 countries, 10,000 facilities, and over 20 million members.
Exclusive financial advisor
CSI Software has been sold to Daxko
First Analysis acted as the exclusive financial advisor to CSI Software in its sale to Daxko, a portfolio company of Pamlico Capital.
About CSI Software:
Founded in Houston, Texas, in 1977, CSI has long been at the forefront of the club management software industry, helping to introduce computers into the operations of gyms and health clubs. CSI’s SaaS platform is an integrated solution that offers modules to manage every aspect of club management, including accounting, member management, registration/scheduling, reports and analytics, and online services to maximize engagement.
About Daxco:
Daxko delivers comprehensive technology and payment solutions and experienced services to the member-based health and wellness market. Most recently, the company expanded its portfolio to offer digital marketing services and full-service billing to health clubs, boutique fitness studios, campus recreation facilities, integrated wellness centers, YMCAs, and JCCs. Since 1998, Daxko has grown to serve customers spanning 58 countries, 10,000 facilities, and over 20 million members.
Exclusive financial advisor
Scout Analytics has been sold to ServiceSource
$32,500,000
First Analysis acted as the exclusive financial advisor to Scout Analytics, a leading SaaS provider of repeat and recurring revenue optimization, in its sale to ServiceSource for for $32.5 million.
About Scout Analytics:
Headquartered in Issaquah, Washington, Scout Analytics was the leading SaaS provider of repeat and recurring revenue optimization, enabling any company to evaluate customer usage data and derive actionable pricing, engagement and upsell opportunities that increase profitability and minimize customer churn. The Scout platform employed a patented usage data platform that correlates revenue streams with user behavior to increase the lifetime value of the user. The company’s solutions combined behavioral analytics, data integration and expert revenue advisor support to identify untapped sources of subscription and transaction revenue.
About ServiceSource:
ServiceSource International brings the world’s greatest brands closer to their customers through digitally-enabled solutions and data-driven insights that personalize and power the “moments that matter”. Backed by 20 years of experience, an industry-leading technology platform, a robust global footprint and a powerful suite of solutions that enhance every touchpoint along the Customer Journey Experience (CJX), ServiceSource delivers impactful revenue growth for global market leaders. Operating out of eight countries with more than 3,000 sales delivery professionals speaking 45 languages, ServiceSource drives billions of dollars in client value annually. ServiceSource is now part of Concentrix (CNXC).
Investment banking and corporate finance services are provided through First Analysis Securities Corporation (“FASC” or “First Analysis Securities”), a subsidiary of First Analysis Corp.