The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 843: Software Stocks Have Massively Crashed. Here's What Founders Need to Know.

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Feb 25, 2026

Jason Lemkin, SaaStr founder and prominent SaaS investor, shares big takes on SaaS market swings and why AI agents now drive real growth. He breaks down event economics, PE’s retreat from classic B2B, the flood of vibe-coded apps, and how AI discoverability and niche, high-priced vertical products are reshaping vendor choice and sales.

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INSIGHT

Events Have Massive Fixed Costs And A High Scale Threshold

Large events have very high fixed costs — expect $10–20M just to 'turn on the lights' and reach profitability.
Once scale is reached extra attendees are near-pure margin, but getting over the nut is the hard, risky part.

ADVICE

Require Growth Reacceleration To Claim AI Status

If growth isn't visibly accelerating after adopting AI, you are not an AI company; growth lift must follow AI work.
Jason Lemkin demands re-acceleration as the metric that validates AI investments, not demos or agents alone.

INSIGHT

Vibe Coding Creates Fast Clones And Rapid Obsolescence

Vibe coding floods the market with demo-ready apps, making differentiation much harder and shortening product lifecycles.
Many rapid builds are obsolete within days because replication is trivial for demo-focused agents.

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SAASTR 843: Software Stocks Have Massively Crashed. Here's What Founders Need to Know. SaaStr founder and CEO Jason Lemkin joins the TBPN show for a wide-ranging conversation on the state of SaaS, AI, and venture capital. Jason shares how he shrunk his team from 15 to 3 people by going all-in on AI agents, why he's lost patience with companies that haven't re-accelerated growth, and the real economics behind running large-scale events. He breaks down why PE has "said goodbye to B2B," how vibe coding is flooding the market with competitors, and what's making the IPO window both exciting and treacherous. Plus: why the agent that closed a $100K deal on a Saturday night matters more than any demo day pitch, and how AI discoverability is quietly reshaping how businesses choose their software stack.

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