Three SaaS ideas evaluated using market-first principles

Executive overview

Most founders fall in love with a product before validating the market. The better approach is to start with market size, macro trends, and the type of SaaS being built — then work back to the product.

The three golden types of SaaS determine ceiling value: system of record (most valuable, hardest to displace), system of engagement (mid-tier, workflow-focused), system of decision (analytics/BI, most substitutable). Each idea below maps to one type.

The three golden types of SaaS

• System of record — where the business runs; high switching cost; highest valuation (e.g. CRM)
• System of engagement — where the work gets done; often syncs to a system of record (e.g. sales engagement tools)
• System of decision — analytics and BI; hooks into other systems; easiest to churn from

Idea 1 (system of decision): AI platform for camera footage analysis

• 1 billion cameras worldwide; growing exponentially across homes, businesses, governments
• Computer vision APIs are maturing rapidly and many are open source
• Combining these two trends enables a SaaS platform that interprets footage for business use
• Use cases: threat detection, customer behaviour analysis, productivity insights, risk reduction
• Data can be correlated with existing systems (e.g. point-of-sale) for richer insights

Idea 2 (system of engagement): workflow platform for contract red lines

• Contract red-lining is a universal B2B pain point — email, mismatched formats, no source of truth
• Legal tech is a $17 billion industry; investment in streamlining legal workflows is proven
• No dominant standard exists for red lines — the "DocuSign moment" hasn't happened yet
• A dedicated platform is naturally viral: sending red lines via the tool exposes the other party to it
• Parallels exactly how DocuSign scaled through network effects

Idea 3 (system of record): CRM for creators

• 50 million creators worldwide; 48% year-over-year growth
• Creators now run real businesses with audiences, clients, digital products, and coaching programs
• Existing CRMs are not built for creator workflows; most creator tools focus on community, not relationships
• The CRM market is $41 billion — proven category with room for vertical-specific entrants
• Opportunity: take a known category and adapt it to an underserved, fast-growing segment

Key principles for vetting any SaaS idea

• Identify the type of SaaS first — record, engagement, or decision — to understand value ceiling
• Start with the market, not the product: size, macro trends, new enabling technology
• Look for natural virality built into the workflow
• Simple ideas are easier to market, sell, and execute — complexity is not a proxy for quality
• Ask: is the incumbent displaceable, or is there an adjacent underserved segment?