Todd Saunders@toddsaunders
I heard an incredible analogy from a VC friend that I can’t stop thinking about.
“The moat in software was the cost of building software. And Claude Code just mass produced a bridge.”
It’s wild when you think about the impact of this.
The SaaS boom produced a few dozen billionaires and a bunch of zero sum winners.
But the AI SaaS era will mass produce millionaires.
There will be fewer ServiceTitans hitting $5B valuations, and instead there will be 50,000 companies doing $500K-$5M each, run by 1-3 people with deep expertise and huge margins.
To be clear, I believe that the total value of software goes up, and the number of companies created goes up exponentially.
But the number of people who capture the value also goes up 100x.
I don’t believe in the “SaaS is dying” headline, I think it’s missing the point.
It’s simply that the power of SaaS is changing hands.
