TLDR Tech / Marketing
Why SaaS got priced out
Public SaaS valuations collapsed despite continued growth, which shows that the market no longer believes in the traditional model. Median SaaS multiples fell from 18.6× revenue in 2021 to 5.1× in 2025, even as HubSpot grew revenue 141% while its stock fell 71%. The core issue is the input model, since software built on manual data entry is being replaced by AI that understands unstructured input like voice and context. Speed gains from AI are quickly commoditized, while quality problems like model collapse and error scaling make judgment more valuable than output. Future products will win by integrating into AI-driven workflows and improving quality. Users now expect tools to work with how they already use AI rather than forcing new systems.
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