We've talked a lot about this on the Pod, but the Great SaaS Meltdown has started and there's no going back. What exactly is happening? In short, hi growth, low/no profitability SaaS is no longer a winning strategy because the big question mark is the durability of that growth in the short term and, because of AI, the lack of profits in the long term. Every SaaS company has sold the dream (to investors and employees) that they will growth quickly now, and harvest lots of cash later. With AI, this assumption may be completely out the window. Now the threshold question is whether their growth will be overtaken by a much cheaper AI-developed solution? If you are a venture supported SaaS startup and are a legacy Heuristics+APIs+CRUD product, it is likely that a new AI oriented workflow is coming for you. Investors in private markets can see this now and think that money to fund short term growth will not be rewarded. Investors in public markets no longer believe long term profitability is possible. They would rather pivot into something they think is more resilient. This is a change in the risk calculus that has existed for the past 15 years and why the chart below is the chart below. Good luck to all the players!