Everyone says SaaS is dead.

Public software stocks are down. Multiples are collapsing. And AI is coming for everything.

But what if that’s not the full story?

In this episode of Verticals, Nic sits down with Morgan Livermore, Founder of Supercruise Capital, to break down what’s actually happening in the software market, and where AI fits into it.

Morgan explains why SaaS multiples have dropped below the S&P 500 for the first time in modern history, why the market may be overreacting, and why software isn’t dying... it’s evolving.

If you are building, investing, or trying to understand what AI actually means for software, this is a clear, grounded breakdown of where things are headed.

TIMESTAMPS:

00:00 Intro

01:03 Why founders are skipping venture capital

05:44 Is the “SaaS-pocalypse” real?

18:18 How AI is changing the startup landscape

21:48 Will AI replace SaaS or just extend it?

26:33 Can big companies adapt?

31:36 Why commoditization is coming for software pricing

37:39 What actually makes a company defensible now

44:15 AI agents, distribution, and the next growth channel

52:38 The real future of SaaS