How to Price Your AI-First Product: The Death of SaaS Pricing and the Rise of Transactional Models with Defy Ventures’ Medha Agarwal

How to Price Your AI-First Product: The Death of SaaS Pricing and the Rise of Transactional Models with Defy Ventures’ Medha Agarwal

Published: November 5, 2025

Duration: 4:49

Medha Agarwal is a Partner at Defy VC, where she focuses on investments in AI-first and vertical SaaS companies. She shares insights at SaaStr AI Summit 2025 from the front lines of AI-first product pricing, exploring why traditional SaaS models are declining in favor of transactional pricing, how to choose the right pricing structure for your business, and strategies for capturing value from labor budgets instead of software budgets.

Top 5 Takeaways

* Transactional pricing is replacing traditional SaaS at an accelerating rate. The fundamental shift is driven by AI’s ability to complete tasks end-to-end, enabling companies to...