David Sacks

So the reason why there's so much uncertainty around SaaS is that SaaS used to be such a easily modeled and predictable category.

So the reason why there's so much uncertainty around SaaS is that SaaS used to be such a easily modeled and predictable category.

And I saw as a VC, we saw the same story play out across many, many different categories of software.

And I saw as a VC, we saw the same story play out across many, many different categories of software.

You'd have this initial period where there'd be this experimentation phase.

You'd have this initial period where there'd be this experimentation phase.

You have a bunch of different products that come to market.

You have a bunch of different products that come to market.

There'd be a battle.

There'd be a battle.

And then the market would eventually settle and there'd be a category leader

And then the market would eventually settle and there'd be a category leader

And they would capture most of the market share and the vast majority of the market capitalization.

And they would capture most of the market share and the vast majority of the market capitalization.

And they would have very, very predictable metrics.

And they would have very, very predictable metrics.

It was very easy to grade a SaaS business.

It was very easy to grade a SaaS business.

You look at ARR, you say annually recurring revenue.

You look at ARR, you say annually recurring revenue.