"If I don't do it, who will?" — The true appeal of vertical SaaS, where the passion on the front lines is different

Hello. This is Yamada from Milife Inc.

Recently, when I've been consulting on careers, I've started hearing these kinds of comments quite often.

“Isn't the SaaS industry hitting a ceiling soon?”
“The phrase 'SaaS is Dead' has become a hot topic, and I'm looking for the next trend.”

It is true that some SaaS companies have reached a plateau and the market's investment perspective has become more stringent. However, based on my personal experience working on the front lines every day, supporting the hiring of many companies and the careers of candidates, I can say that the idea that 'SaaS is dead' is completely wrong.

On the contrary, 'vertical SaaS' (especially in logistics, manufacturing, construction, and real estate) aimed at specific legacy industries is currently right in the middle of a frenzy.

Today, I would like to talk about why excellent business professionals are flocking to 'legacy industry x SaaS' right now, and share the real passion and excitement I see on the front lines.

The day the 'taken-for-granted' reality of goods arriving on time collapsed

I reaffirmed that 'the vertical SaaS domain is truly hot' when I witnessed the international logistics chaos that occurred a while ago.

Geopolitical risks such as tensions between the US and Iraq, and the Strait of Hormuz issue. These are by no means news from a distant country; they are directly linked to our daily lives. Critical problems such as 'goods not arriving on time' and 'factories stopping due to a lack of parts' occurred in a chain reaction, and there was a moment when the 'taken-for-granted' reality we had unconsciously enjoyed came crashing down.

※ I also posted about this in my previous note!

I felt keenly, at a real-life level, how fragile the balance is upon which our living infrastructure and the industries that support Japan are built.

The pioneers of vertical SaaS who are updating the backbone of Japan

In the face of such critical situations and the structural issues that the industry has harbored for years, there are SaaS startups that are tackling them head-on, saying, 'If we don't do it, who will?' What they are providing is not just 'business efficiency tools,' but solutions that transform the very infrastructure of society.

■ Don't stop the blood flow. Performing surgery with DX on the ultra-analog logistics sector.

• Shippio / Resilire: Platforms that visualize complex and often black-boxed international logistics, manage risks across the entire supply chain, and ensure that supply networks are not severed even in times of emergency.

• Hacobu: Tackling deep-rooted issues like the multi-layered subcontracting structure to transform the industry structure itself. Supporting logistics means supporting Japanese society itself. They are continuing a challenge of staggering scale: 'inventing new logistics.'

■ Unleashing the potential of Japan's specialty, the manufacturing industry

• CADDi: The 'manufacturing industry' is a core industry that powerfully supports Japan's GDP and is something to be proud of globally. However, behind it lay staggering inefficiencies in procurement and drawing management. CADDi is cutting into that with technology, attempting to unleash the overwhelming potential that manufacturing sites inherently possess.

• Tebiki: Tackling deep-rooted issues unique to the 'front lines,' such as the transfer of skills that have become personalized and chronic labor shortages, using video training and data utilization. They are continuing to challenge themselves to transform the entire deskless worker industry that has been left behind by the wave of digitalization, and to open up the strength and future that the front lines inherently possess.

■ Breaking the 'information asymmetry' of the real estate industry where massive capital moves

• estie: Although it is a market where massive capital in commercial real estate moves, it has long been an analog world relying on paper, faxes, and non-public information. By providing a data infrastructure there, we break down the thick wall of information asymmetry. There is a dynamism and romance unique to the real estate sector in shaping the future of cities through data.

There are still many more companies full of romance that I couldn't write about here!!

An intense sense of ownership: "We will carry the future of this industry"

The appeal of vertical SaaS lies in the "grit" and "tangibility" that emerge precisely because you dive deep into a specific industry.

Specializing in a single industry means respecting the complex business customs and history unique to that industry and acquiring deep domain knowledge. Because it is a field that is never straightforward, the barriers to entry are high, and the players who have the resolve to tackle it seriously are limited.

That is why the management teams and members fighting in this field share an overwhelming spirit and sense of mission that "we will carry the future of this industry."

In fact, when I listen to people on the front lines, HR, and executives during meetings and social gatherings, it is truly impressive to see everyone's eyes light up as they talk about the industry with excitement. I am overwhelmed by their strong sense of ownership—a desire to support those fighting in the industry, make it a better world, and thereby contribute to society.

They take a scalpel directly to structural problems that have been neglected for years and face the pain of the front lines with grit. Solving the issues of a specific industry leads directly to solving the social issues of Japan as a country, which in turn leads directly to the scaling of the business.

I feel that this "passion" and "tingling sense of tangibility" are the greatest attractions of taking on the challenge of vertical SaaS.

To those looking for the next "enthusiasm" to challenge

If you are currently wondering, "Where should I burn my skills and experience next?" after cultivating them in your career so far. Or, if you feel a sense of dissatisfaction with the phase of growing an existing business model.

Please take a look at the field of "Legacy Industry x SaaS."

There, a vast frontier is spreading out—far from being a dying industry, it is about to welcome a full-scale dawn. Updating Japan's massive industries and connecting social infrastructure to the next generation. Such a large-scale challenge is waiting for you.

If you feel even a little bit that it "might be interesting," let's talk casually. I will tell you everything about the attractive companies fighting passionately on the front lines and the career possibilities that can only be found there.

Thank you for reading until the end.