Elevator Pitch
AI has cut the cost of building software 10–100x, eroding legacy SaaS's code moats. YC wants challengers, from cheaper clones to AI-native suites aimed at categories that seemed untouchable.
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Full Description
If AI coding really makes incumbents vulnerable, YC sees the biggest startup opportunity in a decade. SaaS won because custom software was too expensive; with the cost of producing software down 10–100x, the moat of decades-old codebases is gone.
Ways in: clone a product and sell it for a tenth of the price, rebuild the workflow AI-native from the ground up, bundle point solutions into one suite, or give away an open-source replacement and charge for services and hosting.
Aim high: YC encourages going after chip design software, ERPs, industrial control systems and supply chain management rather than project management tools.
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