FYI - For Your Innovation Is SaaS Dead? | The Brainstorm EP 119
27 snips
Feb 13, 2026 
Frank Downing, a researcher on SaaS, platforms, and AI in enterprise software, joins to probe SaaS’s future. They discuss how AI reshapes valuations and pricing power. Conversation covers AI-native entrants, platform growth outpacing classic SaaS, and whether incumbents can adapt pricing and business models. Crypto’s move toward institutional adoption is also explored.
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AI Lowers Barriers And Rewards Speed
- AI models are getting cheaper and better at building software, lowering barriers to entry for new competitors.
- Nimble teams that ship fast will outcompete incumbents relying on predictable renewals.
SaaS Multiples Have Re-Rated Down
- SaaS public multiples have compressed, shortening implied payback periods substantially.
- Investors now demand faster returns given rising uncertainty about long-term SaaS cash flows.
Pricing Power Faces AI Pressure
- New AI-native startups can grow rapidly, while incumbents struggle to translate LLM features into sustained growth.
- Pricing power will weaken as many similar solutions flood the market.
