Everyone says to stay away from services. "Software scales; services don't."

Vertical software (VSaaS) is a great business model, but it doesn't fit every market. Software is ultimately a very small piece of the global economy, and most software companies try to carve out room in small industries where a $10 billion market size seems large.

And some industries are just too resistant to new software products. If you find yourself trying to sell tech to resistant buyers who are too rigid to make a change, it's time to ask yourself: Should I sell software as a service or simply sell the service itself?

Watch Tomer's Partner Perspective for insights into the current state of SaaS from the VC perspective, what companies like Uber and Lemonade did 10 years ago that's still paying off today, why you should build a services company despite the naysayers, and the right way to do it.

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