Short excerpt from a YouTube video by Andrew Gazdecki arguing that SaaS businesses are currently undervalued (partly due to AI-driven multiples), and that while technical MVPs can be built quickly (e.g., on Replit), the critical challenge and sustainable moat for startups is distribution — acquiring and retaining customers to scale.
Chapters
So right now is a great time to buy businesses because I think that generally SaaS is undervalued in the marketplace basically because of AI SaaS multiples have swung too far to one side and so there is a bit of a pricing inefficiency there but I think the best thing to do is to be long term is to be able to produce your own products and go to market But I think right now thing I've been talking about a lot on social media is distribution so the biggest thing for startups is you can have, you know I can go on replit and basically go and code no code, you know by code a solution in literally hours and get an MVP going. I think that with that the biggest thing when you have thousands of new startups every like week or month is distribution. How do you get customers? How do you keep customers? I think that is where we've been focusing a long time and effort to get scale so I think that's a moat.