“Growth-stage software no longer requires or generates capital like early SaaS.”
The traditional VC model is breaking. Early SaaS companies needed capital to scale and generated returns that justified the model. Modern software doesn’t work that way. AI companies need infrastructure financing, not conventional venture funding. The 10-year fund cycle with forced exits doesn’t match how these businesses actually grow. Patient capital that can wait longer and accept different return profiles is going to eat the lunch of funds still pretending it’s 2015.