In vertical SaaS, the most promising opportunities lie in automating mundane, repetitive jobs that are currently labor-intensive.

The challenge for businesses is breaking down existing processes into sequential micro-tasks to create agentic workflows.

American startups often focus on narrow solutions, while compound software businesses can address broader business process management needs.

In 2025, I envision a lot of business adoption of agents, automating repetitive tasks and scaling up operations that were previously too expensive. This could lead to significant efficiency improvements.

The traditional approach to building business software is often limiting; a compound approach with one system that handles multiple functions is more effective.

At Linear, we focus on building tools specifically for product software companies, especially early-stage startups, to ensure we meet their unique needs.

People prefer to describe their workflows in natural language rather than using prompts, allowing for simple visualizations of their processes.

Specific use cases, like processing sales data or compliance checklists, are more likely to succeed than generic solutions.

Companies that can quickly provide value around core workflows will have a competitive advantage in the AI space, especially in vertical markets.