AI bulldozer flattens many SaaS startups: Key Highlights | TheBriefWire
AI bulldozer flattens many SaaS startups
Published 16 July 2026 ยท tech
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
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 in
Published: July 16, 2026 โข 6:00 AM IST ยท Updated: July 16, 2026 โข 8:37 AM ISTBy TheBriefWire Editorial Team
Key points
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 in