'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT
PitchBook says more than 220 former unicorns have lost their billion-dollar valuations as AI funding shifts toward newer startups.
- Hundreds of startups built before ChatGPT's 2022 arrival are stranded as the generative AI boom redirects venture capital, with more than 220 companies losing their billion-dollar valuations and becoming 'fallen unicorns,' according to PitchBook data.
- Generative AI platforms allowing non-developers to build custom applications have destabilized SaaS, while AI-native enterprise spending surged 94% year on year in early 2026 and traditional SaaS growth compressed to single digits.
- Startups that last raised in 2021 are now worth 68% less on average, while those funded in 2022 saw a 52% decline; 75 SaaS firms comprise PitchBook's largest casualty class among fallen unicorns.
- Without access to venture funding, many fallen unicorns face acquisition at steep discounts: Stash was acquired by Grab for $425 million, below the roughly $660 million investors contributed to the company.
- Reevo founder Zhu warned that unless companies make a "stark, 180-degree pivot to rebuild the exact same thing from scratch, they're going to slowly fail" as investors question why older startups exist when OpenAI, Anthropic, and Google can perform similar tasks.
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AI is killing the unicorns: More than 220 unicorn startups are now worth less than half their peak value - Tech Startups
Five years ago, Chegg looked unstoppable. The online education company rode the pandemic boom to a market value of more than $14 billion. Investors loved the story. Millions of students relied on the platform for homework help, tutoring, and study […] The post AI is killing the unicorns: More than 220 unicorn startups are now worth less than half their peak value first appeared on Tech Startups.
AI crushes startup valuations for pre-ChatGPT companies
The AI boom has created a two-speed startup economy. Companies building on generative AI are raising at historically unprecedented valuations, while startups that last raised capital before ChatGPT launched in November 2022 are watching their worth collapse. According to PitchBook valuation estimates, more than 220 companies that once held billion-dollar valuations have now fallen below that threshold, […] This story continues at The Next Web
How ChatGPT Changed The Startup Funding Game Forever
The rapid rise of artificial intelligence is reshaping the startup landscape, leaving many companies built before ChatGPT struggling to justify their valuations, reported by CNBC. According to PitchBook data cited in the report, nearly half of America's 857 unicorn startups have not raised fresh funding in at least three years. More than 220 former billion-dollar companies have reportedly fallen below unicorn status as investors redirect capital…
While the generative AI boom has led to the establishment of numerous AI startups, startups founded before the boom have declined. According to research, half of the once-rapidly growing startups have seen their valuations drop since the emergence of ChatGPT.
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