As you might have heard, AI agents are all the rage. But what does it take to make one successful? According to YCombinator, this space could give rise to hundreds of billion-dollar companies.

As its name suggests vertical AI agents thrive in niche areas. These domains often house a wealth of “tribal knowledge” — specialized insights known only to industry insiders.

This knowledge is invaluable because it allows developers to design tools that solve the most pressing and nuanced problems for their users.

But here’s the catch: without access to this expertise, even the most sophisticated developer might struggle to create something truly useful.

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Tribal knowledge is rare not because the information itself is obscure, but because the intersection between industry experts and technical builders is so small.

For instance, think about fields like logistics, medicine, or legal workflows. Thousands of professionals in these areas understand their industry’s pain points deeply.

However, only a fraction of them can articulate these needs in a way that converts into software code.

Building Relationships: The Path to Tribal Knowledge

If tribal knowledge is so critical, the obvious question becomes: how do you access it? The answer lies in relationships. Many industry experts aren’t active on social media platforms like X (formerly Twitter). Instead, they’re exchanging insights in offline settings — trade conferences, professional associations, and even informal gatherings.

As a builder here’s how you can start:

Research Niche Communities: Identify where professionals in your target industry hang out. Read their forums, join Facebook groups, and listen to discussions at conferences related to their field. Connect with them in some capacity, whether through a mutual friend, by speaking to people at a party you’ve been invited to, or by discovering they work in such an industry and can introduce you to others.

Offer Value First: Create small, targeted solutions to address minor pain points in their workflows. This builds trust and opens doors for collaboration. Get your foot in the door by offering these solutions at a loss. Consider it the cost of starting a fruitful relationship that can pay off in multiples.

By immersing yourself in these communities, you’ll gain insights that can’t be found on X, Reddit, or blog articles. The goal is to establish a direct line of contact with professionals in industries where the potential for disruption with AI agents is greatest.

Focus on non-technical industries dealing with large contracts involving tedious and repetitive bureaucratic work. For example, consider the construction industry applying for public tenders, where issues like specifying the wrong type of asphalt can lead to providers charging a premium.

The Vertical SaaS Opportunity

To summarize, the steps for solo entrepreneurs or developers to succeed in this space are:

Identify underserved niches ripe for disruption.

Build relationships with domain experts to access tribal knowledge.

Start with a Minimum Viable Product (MVP) — even if it’s just a GPT wrapper — and iterate based on real-world feedback.

For example, a tool that tracks and manages guest records for vacation rental hosts might start as simple automation but could grow into an indispensable platform with the right insights. Or consider a voice transcription app for doctors.

The true moat in vertical SaaS isn’t just the code — it’s the niche expertise. And unless you can access or partner with those who possess it, your efforts in these industries might fall short.

Final Thoughts

Knowing how to code was never enough, at least in the entrepreneurial world. However, with the rise of AI, it’s become even less important. There is now more emphasis on understanding the intricacies of your target market. By building relationships and embedding yourself within niche communities, you need to position yourself exactly where the problems can be solved.

Thanks,
Matija