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MM
Manny Medina
04/22/25
@ Sequoia Capital
Paid serves as the business engine for AI companies, handling billing, invoicing, monetization, and margin management to help them understand their unit economics.
Video
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Pricing in the AI Era: From Inputs to Outcomes, with Paid CEO Manny Medina
@ Sequoia Capital
04/22/25
Related Takeaways
MM
Manny Medina
04/22/25
@ Sequoia Capital
Paid provides infrastructure that helps AI companies transition from simple activity-based pricing to more sophisticated value-based approaches, enabling them to capture their fair share of the value they create.
MM
Manny Medina
04/22/25
@ Sequoia Capital
The mission behind Paid is to provide AI companies with the tools they need to manage pricing and understand their business fundamentals better, as traditional SaaS pricing models don't work for AI businesses, which require new approaches like outcome-based and agent-based pricing.
MM
Manny Medina
04/22/25
@ Sequoia Capital
To succeed, AI companies need to understand their unit economics and how to price their services effectively based on the value they provide.
AL
Aaron Levie
02/20/25
@ Y Combinator
The pricing model for AI services is evolving; companies might pay for successful outcomes, qualified leads, or resource utilization, reflecting a shift in how value is perceived in AI-driven businesses.
MM
Manny Medina
04/22/25
@ Sequoia Capital
The inspiration behind my new company, Paid, was the realization that existing software for managing pricing and margins was inadequate for the evolving needs of AI businesses.
CE
Carl Eschenbach
05/06/25
@ Sequoia Capital
Workday's three-pronged approach to monetizing AI includes seat-based pricing, role-based agents, and consumption-based API access.
MM
Manny Medina
04/22/25
@ Sequoia Capital
Agent-based pricing allows companies to charge based on the work done by AI agents, which can replace a significant portion of traditional sales development roles.
MM
Manny Medina
04/22/25
@ Sequoia Capital
AI companies need better tools to understand their unit economics and capture more value from their offerings.
MM
Manny Medina
04/22/25
@ Sequoia Capital
Charging by activity and changing pricing based on workflows are effective strategies for AI companies, moving towards value-based pricing rather than cost-based pricing.