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June 17, 2025 29 mins

Will AI erode vertical SaaS? How can vertical software companies win market share when enterprise customers can use AI to build their own systems?

Vertical software founder, CEO, and investor Luke Sophinos joined Rainforest VP of Revenue Aaron Steinberg to discuss the future of vertical SaaS. 


They covered:

  • Why focusing on just one or two core values can help software companies build a strong team
  • Luke’s proven playbook for success in vertical SaaS, and how AI is changing it
  • The biggest mistake startups make when building AI products and what to do instead 
  • One prerequisite vertical software platforms must have before adding payments
  • How vertical SaaS companies can win their market by becoming the system of record



Mentioned on this episode:


Luke Sophinos: https://lukesophinos.com/


Luke’s newsletter: https://www.newsletter.lukesophinos.com/ 


Vertex: The Vertical Software Conference

September 9th, 2025 in San Francisco, CA

https://www.vertexconference.com/ 


Vertical Software Summit

October 16th and 17th in Miami, FL

https://www.verticalsaasgroup.com/vertical-software-summit 


The Payments Strategy Show is brought to you by Vertex and Rainforest.


Vertex: The Vertical Software Conference

This invite-only event and community offers networking, learning, and unique insights on go-to-market, monetization, product expansion, fundraising, and M&A.

Learn more: https://www.vertexconference.com/

Get updates on LinkedIn: https://www.linkedin.com/company/vertex-vertical-software-conference


Rainforest is the embedded payments purpose-built for vertical SaaS.

Grow revenue with the only payfac-as-a-service provider optimized to help you drive more payments volume at higher margins, without risk or compliance headaches.

Learn more: https://rainforestpay.com

Connect with us on LinkedIn: https://linkedin.com/company/rainforestpay


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