Jaeden Schaefer

They have a lot more efficient models and architecture.

And I think Ryabinsky put it really plainly.

He was kind of saying what VCs are looking at.

And he said, the SaaS companies struggling to raise capital are the ones that can easily be rebuilt.

So generic productivity tools, product management platforms, basic CRM clones, and kind of thin AI wrappers on top of existing APIs all fall into the category.

Now, are these not going to be successful companies?

No.

And this is perhaps what I think

It is a really important data point outside of investors and VCs because we just saw a massive exit in AI from a company that was, I think, CalAI just got acquired by my fitness pal that acquired them.

And CalAI just helps you track your calories.

It helps you lose weight.

And a lot of people are like, oh, man, this is just a thin wrapper on top of ChatGPT.

But guess what?

they had 15 million downloads.

They had over $30 million in annualized revenue.

And really, a lot of their unlock was that they really hacked the growth hacking on social media, TikTok, and making shorts.

And so I think on the one hand, you have a lot of these people that are saying, you know, oh, look, like you can't invest in these companies that are thin kind of wrappers.

Well, if you have another angle, like if you have the growth kind of locked in and you can get $30 million in annual recurring revenue, guess what?

You're going to get an acquisition.

And so that's what happened.