AI shakes up SaaS startups with more than 680 shutdowns
Business
AI is seriously shaking things up for software-as-a-service (SaaS) startups: more than 680 have shut down in just one year.
In 2024, close to 680 SaaS companies closed, and another 123 followed.
Even AI native startups aren't immune, with shutdowns rising from six to 16 last year.
Investors cautious on SaaS and AI
With so many companies struggling, investors are now way more cautious about backing SaaS and AI startups.
The slow-growing ones are described as "either dead or zombies," and the days of easy money and big returns seem to be fading as everyone figures out how to adapt to this new AI-driven tech scene.