Dell VC executive says AI will reshape SaaS pricing, not end the model

Daniel Docter, managing director at Dell Technologies Capital, says artificial intelligence is putting pressure on the software-as-a-service model, but he does not expect SaaS to disappear. For investors following enterprise software, his point is direct: AI may change how software companies make money, not erase the strongest businesses overnight.

In an interview with Crunchbase News, Docter said AI is likely to move software away from per-seat pricing, where companies pay based on the number of users, toward models tied to usage or results. SaaS, short for software-as-a-service, is the subscription model behind many cloud software companies.

Docter said established software companies still have advantages if their management teams adapt. He pointed to brand recognition and existing customer relationships at companies such as Salesforce, Intuit and Oracle as strengths that newer AI startups often lack.

“There will also be SaaS companies that don’t make the turn,” Docter told Crunchbase News, describing AI as another technology shift that will reward some management teams and expose others.

Dell Technologies Capital’s deep-tech lens

Docter came to venture capital after starting his career as a technologist. Crunchbase News reported that he holds degrees in electrical engineering and computer science, along with a Ph.D., and moved toward work that connected technical research with commercial uses. His ability to raise money for projects eventually led him into venture capital 26 years ago.

That background fits Dell Technologies Capital’s broader approach. The Palo Alto-based firm’s investment team includes people with training in electrical engineering, computer engineering, computer science and data science, according to Crunchbase News. Many have worked at large tech companies and startups.

Since launching in 2012, Dell Technologies Capital has invested $1.8 billion across the enterprise technology stack, according to Crunchbase News. The firm recorded six high-profile exits at the end of 2025 alone.

Docter said the firm does not require every investment to connect directly to Dell’s business. Instead, he said Dell Technologies Capital uses access to Michael Dell’s network and the wider Dell company network to understand what large corporate customers want and to help portfolio companies reach them.

Too early can still work, but it takes capital discipline

For deep-tech startups, Docter said the first question is still about the founders. He told Crunchbase News that Dell Technologies Capital looks beyond technical skill and studies whether founders can take feedback, recognize mistakes and change direction when needed.

The harder part, he said, is keeping a company alive when the market may need five, 10 or more years to catch up. Docter said overspending can damage a startup, and long-cycle companies need co-investors willing to keep supporting the business over time.

He also drew a line between two kinds of startup markets. In category creation, a startup tries to build a new type of product, which can require heavy spending to educate customers. In category disruption, a company attacks an existing market with a better, cheaper or faster product. Docter said being first can help more in disruption than in creation.

Distribution may separate AI startups

Docter said one of the biggest questions for early-stage AI founders is distribution, meaning how a company gets its product into customers’ hands. He said many startups may have strong technology, so the ability to sell and reach buyers could become the difference.

That may also create acquisition opportunities. Docter said some SaaS companies may need to buy AI startups to transform faster, while startups may gain the market access they could not easily build alone.

For Series A and B startups, Docter said Dell Technologies Capital is focused on whether revenue is durable. He described a shift from contracted recurring revenue to what he called “re-occuring” revenue, where customers return for multiple projects even without annual or multiyear contracts.

His advice to founders with venture backers was straightforward: ask investors for more help, whether that means management guidance, introductions to large-company decision makers or access to sales channels.

This story draws on original reporting from Crunchbase News.