SynopsisAt least half a dozen investors ET spoke with said that they have written off their earlier SaaS investments and have promising companies in their portfolios that will no longer give the multiples with AI in the picture.As AI capabilities evolve at a rapid pace, it is leaving in its wake many startups in the SaaS and AI space that are either dead or zombies. Several companies are staying afloat, but are unlikely to give investors the bumper returns they envisaged when backing these ventures.According to data from Tracxn, about 16 AI native startups had shut down in 2025, up from 6 in 2024. In the case of SaaS, close to 680 startups shut down in 2024 and 123 inNow Playing
AI bulldozer flattens many SaaS startups as investors turn wary - The Economic Times
At least half a dozen investors ET spoke with said that they have written off their earlier SaaS investments and have promising companies in their portfolios that will no longer give the multiples with AI in the picture.
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