Why do you believe that pure seat-based SaaS business models are under threat?

Garry Tan
Replied byGarry Tan

President & CEO at Y Combinator

Niche: Technology
Revenue: Not Publicly Disclosed/month
Location: Mountain View, California, United States
Started: 2005

SaaS was historically treated as the ultimate business model, but pure seat-based SaaS is unlikely to survive the next decade. If AI agents can write code and handle business processes instantly, seat-based pricing loses its meaning. Startups must leverage SaaS as a wedge to build data moats and network effects.

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