Lucas Swisher

I think price does matter, but I think it matters least.

Margin matters, but early, it can be a misleading indicator.

Data is a prerequisite.

It is not the answer.

One of the places where we don't spend time, these pre-revenue companies are really high valuations.

I don't think the king making concept is a real thing.

Who's gonna wanna help you and who's gonna wanna hurt you?

For the first time ever with this AI wave, people are questioning the terminal value of SaaS.

These were supposed to be like insurance companies, you know, annuity streams that just have revenue streams and profit pools forever and ever and ever.

And for the first time with a lot of AI, and I think in particular in the last six months with a lot of the coding models that have come out of Anthropic, OpenAI, and others, you are starting to question that value.

And when you question that value, a lot of other things happen.

The breaks that you got on SBC, stock-based comp, and gap versus non-gap earnings, those all start to go away.

So that's the first dynamic.

And then I think the second dynamic that's happening is people don't know which SaaS is going to be affected, right?

You can think of a bull case and a bear case for basically every SaaS company.

in the public markets.

And when that happens, people are saying, okay, I'm just gonna take my bags, and I'm gonna walk away, and I'm gonna do something else.

Because why own anything if I'm really not sure which one of these things is gonna work?

I'm just gonna go own consumer internet, or simies, or something else, right?

And so I think that's the real dynamic that's happening, is those two things are happening all at once.