There are an awful lot of small software companies which didn't need much more than "capable of writing software" and "at least as much sales skill as a clerk at Nordstrom's" to get started. Many of them don't sound like particularly "good ideas."
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That's not the traditional definition of "vertical" but it's operationally the important thing for small software companies; customers being similar makes your product challenges more tractable, helps bootstrap marketing and sales by reducing it to "Find everyone like X", etc.
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