SaaS & Startupintermediate
SaaS
Software as a Service
Definition
A business model where software is delivered online on a subscription basis, customers pay a recurring fee to access the product instead of buying it outright.
Why it matters
SaaS generates predictable recurring revenue (MRR/ARR) and builds compounding value over time. It's one of the most scalable business models because the marginal cost of adding a new customer is near zero.
Example
Shopify, Notion, and Canva are all SaaS products. You pay monthly for access, not a one-time licence fee.
Related terms
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