9h ago

Y Combinator CEO Garry Tan advises founders to abandon 2010-era SaaS business models when building with 2026-era technology

Tan warned against building cheap Yelp or Basecamp clones.

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Original post
OPGarry Tan#270Garry Tan@GARRYTAN

Founders must stop trying to building 2010-era businesses with 2026-era technology. Don't try to rebuild Foursquare or Yelp. Don't try to recreate Basecamp by 37 Signals with $10/mo SaaS pricing. Don't underprice! If it works it's worth a lot more. Don't be tempted to become "Tech enabled PE" with revenue tricks. The rules of tech changed with AI. Play the new game.

11:26 PM · May 26, 2026 View on X
Reposted by
Garry Tan#270@GARRYTAN
QUOTE POSTBojan Tunguz#687Bojan Tunguz@TUNGUZ

This is not your grandpa's VC bingo any more.

Garry TanGarry Tan@garrytan

Founders must stop trying to building 2010-era businesses with 2026-era technology. Don't try to rebuild Foursquare or Yelp. Don't try to recreate Basecamp by 37 Signals with $10/mo SaaS pricing. Don't underprice! If it works it's worth a lot more. Don't be tempted to become "Tech enabled PE" with revenue tricks. The rules of tech changed with AI. Play the new game.

6:26 AM · May 27, 2026 · 172.2K Views
12:48 PM · May 27, 2026 · 6.4K Views
Y Combinator CEO Garry Tan advises founders to abandon 2010-era SaaS business models when building with 2026-era technology · Digg