# Episode 812 | The 2025 State of TinySeed

Page: https://stenobird.com/podcast/startups-for-the-rest-of-us/episode-812-the-2025-state-of-tinyseed
Text version: https://stenobird.com/podcast/startups-for-the-rest-of-us/episode-812-the-2025-state-of-tinyseed.md
Podcast: [Startups For the Rest of Us](https://stenobird.com/podcast/startups-for-the-rest-of-us)
Published: 2025-12-23T10:00:47+00:00
Episode link: https://www.startupsfortherestofus.com/episodes/episode-812-the-2025-state-of-tinyseed
Audio file: https://prfx.byspotify.com/e/episodes.castos.com/5e1c969972fbb8-96341148/2285399/c1e-129zt5pn4rs6nj8z-okj590g7cjwm-6warii.mp3
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Duration seconds: 1726

## Resource

Rob Walling analyzes the evolution of the TinySeed portfolio, revealing how B2B SaaS trends are shifting toward vertical markets and AI-integrated workflows. He explores the impact of 'vibe coding' and the increasing importance of founder community in a remote-first era.

## Highlights
- Main idea: The TinySeed ecosystem acts as a fractal of the broader bootstrapped SaaS movement, connecting content, community, and capital
- Trend observation: Vertical SaaS is increasingly outperforming horizontal SaaS in the current funding landscape
- Failure mode: High churn in AI-focused startups, even those showing rapid initial growth, remains a critical risk factor
- Practical takeaway: High-quality applications are driven by referrals from alumni and established founder communities rather than broad marketing
- Strategic shift: Moving from high-volume, zero-revenue applicants to a more disciplined focus on companies with established MRR

## Topics

B2B SaaS, Venture Capital, Bootstrapping, AI Startups, Vertical SaaS, MicroConf, TinySeed, Software as a Service, Founder Community

## Chapters
- 1:00 — The SaaS Ecosystem Fractal: How TinySeed, MicroConf, and the podcast create a continuous loop of founders, mentors, and investors.
- 3:00 — The Value of In-Person Connection: Reflections on Tiny Fest and the necessity of community for preventing founder isolation.
- 11:40 — The Rise of AI and Vibe Coding: Analyzing the impact of AI-first startups and the risks of high churn in new AI-driven models.
- 13:40 — Application Trends and Revenue Bars: How TinySeed shifted focus from raw application volume to prioritizing companies with proven MRR.
- 15:50 — The Power of Referrals: Data showing that the majority of applicants originate from within the existing founder network.
- 19:50 — Vertical SaaS vs. Horizontal SaaS: Why recent funding trends favor specialized, industry-specific software over general-purpose tools.
- 22:00 — Combating Founder Isolation: The importance of mastermind groups and shared experiences in maintaining long-term founder resilience.

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## Transcript

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