Jul 30, 2026 – 5.00amIt is news to nobody that the rise of artificial intelligence has dramatically shaken the tech sector investment world in 2026, but hidden behind the headlines about the so-called SaaSpocalypse is a bright spot, where experts believe the investment case is improved by AI rather than destroyed by it.In both public and private sector investment, AI has spooked the horses, with the number of start-up deals in Australia falling markedly, and software shares on the ASX and tech-heavy Nasdaq deeply underwater.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
As AI battered software stocks, cybersecurity investors cashed in
Artificial intelligence’s rise has sparked software sell-offs and a VC retreat, but some are profiting as markets recognise growing threats.
TL;DRAI
AI depressed SaaS dealflow in 2026, but cybersecurity investment flourished as enterprises prioritized security amid market downturn. Security capex proved resilient against tech cuts, revealing CTO priorities shift toward essential infrastructure over software commoditization.
106 words~1 min read
