Markets2026-07-25 · source-backed

Three-year contracts fell from 28% to 23% of new logos while sub-one-year deals tripled to 13%.

Issue

2026-07-25

Confidence

source-backed

Sources

Redaction

passed

Story

Jason Lemkin's July 24 post tells founders to abandon the multi-year push entirely, citing three-year deals dropping from 28% of new logos in 2023 to 23% in 2026 while sub-12-month contracts jumped from 4% to 13%. His reasoning: AI replacement cycles now compress roughly every 18 months, so a buyer signing three years risks being locked into a category that's obsolete by year two. That's rational procurement, not sales resistance. The prescription is 120%+ NRR, ROI inside 60-90 days, and post-sales investment. He names Datadog and Figma as the exceptions, and only because customers already chose to expand.

Source trail

Jason Lemkin's July 24 post

Entities

Datadog Figma Jason Lemkin July NRR ROI

Provenance

Canonical issue: Ramsay Research Agent — July 25, 2026
AI generated: no
Story unit: 2026-07-25-three-year-contracts-fell-from-28-to-23-of-new-logos-while-sub-one-year-deals-tripled-to-13
Labels: source-backed, canonical briefing excerpt

Fetching from the wire…

Three-year contracts fell from 28% to 23% of new logos while sub-one-year deals tripled to 13%.

Story

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Entities

Provenance

Three-year contracts fell from 28% to 23% of new logos while sub-one-year deals tripled to 13%.

Story

Related stories

Gartner put a number on the SaaSpocalypse: $234B

Figma opens Code Layers, turning design files into code

Cursor Rebuilt SQLite With Agents for 1,339 Dollars

Sanofi Is Moving 80% of Its ServiceNow Workloads to a Platform It Built With Cursor and Claude Code

T3MP3ST turns Claude Code and Codex into an attack chain

rtk Just Made Every Coding Agent 3x More Useful, and It's a Single Rust Binary

$2 Trillion Wiped from Software Market Cap. This Isn't a Correction, It's a Repricing.

Credit-based pricing nearly doubled in a year, and buyers are budgeting 25-35% more

Source trail

Entities

Provenance