AI startups are growing fast and making millions quickly. Old SaaS companies can’t keep up and might get left behind.
The article explains why AI-first startups are growing much faster than traditional SaaS companies and what’s causing this shift. It also shows why the old ways of building and selling software are not working anymore.
AI startups like Lovable are reaching huge revenues in record time. Unlike old SaaS companies that needed years and large teams to grow, these new companies are doing it in months with small teams. That’s because they use AI to build, launch, and sell much faster. They don’t just speed things up-they work in a whole new way. AI helps teams automate tasks, test ideas, and create working products in days instead of months.
There are two big ways AI tools are being used. Inside companies, teams use AI to build tools and prototypes by themselves, without waiting on developers. Outside, entrepreneurs use AI to launch products, build websites, and even start companies on their own-no co-founder needed. AI also changes how money is made. In old SaaS, users paid per month for features. In AI tools, people start using it for free and pay only when they need more. This makes users get value fast and builds strong habits.
Older SaaS companies are struggling because they weren’t built for this kind of speed. They use slow systems, need big teams, and can't change pricing or products easily. AI-native companies don’t have these problems. They move fast, don’t collect tech debt, and don’t need lots of managers. They’re built for speed, and that speed keeps growing over time. If traditional SaaS companies don’t rebuild from scratch, they’ll keep falling behind.