So SVB has another deep dive out across all its enterprise software customers. It has at ton of great data.
After diving deep into their data (covering everything from funding patterns to unicorn lifecycle management), we’ve pulled out the 10 most surprising insights that every B2B founder, operator, and investor needs to understand heading into the back half of 2025.
#1. AI Companies Are Burning Through $100M in Half the Time It Used to Take
The Shocker: AI startups are burning $100M in ~3 years (for the 2022 cohort), which is roughly half the time it took a decade ago. Meanwhile, they’re scaling to $100M revenue in just ~2 years.
Why This Matters: This isn’t just about AI companies being capital-intensive. It’s fundamentally reshaping venture economics. The traditional VC playbook of “grow efficiently, extend runway” is being turned upside down for AI companies that need massive compute infrastructure from day one.
The Takeaway for SaaS Founders: If you’re building AI-native features, plan for dramatically higher capital requirements than traditional SaaS. But also recognize the revenue acceleration potential is unlike anything we’ve seen before.
#2. 68% of Enterprise Capital Now Goes to $100M+ Rounds
The Shocker: Mega-rounds dominate enterprise funding. AI deals represent just 6% of all mega-deals by count, yet account for ~50% of the capital raised in those mega-deals.
Why This Matters: This reveals a massive bifurcation in the market. There are a handful of AI companies raising billion-dollar rounds, while everyone else is fighting for scraps. The concentration is more extreme than even the peak bubble years.
The Takeaway for B2B Founders: If you’re not raising a mega-round, you’re competing in an entirely different funding market. Focus on capital efficiency and proving clear ROI to customers who are increasingly budget-conscious.
#3. Series A Graduation Rates Have Collapsed to Historic Lows
The Shocker: Series A graduation rates have hit rock bottom, with the bottom quartile for revenue at Series A ($1.3M in 2024) now matching what used to be the median in 2021.
Why This Matters: The seed-to-Series A gap has become a chasm. Companies are raising larger seed rounds ($2.8M median, up 34% since 2021) but facing dramatically higher bars for Series A. This isn’t just market conditions—it’s a structural shift.
The Takeaway for B2B Founders: If you’re raising seed today, plan for 18-24 months of runway minimum, and hit $1.5M+ ARR before even thinking about Series A conversations. The days of raising Series A on potential are over. And be ruthlessly honest about where you stand. Ask all your seed investors — they know.
#4. The Middle in VC is Getting Hollowed Out
The Shocker: Mid-sized VC funds are being systematically marginalized. Since 2020, there’s been clear bifurcation where the biggest funds make massive investments and small funds carve out niches, leaving mid-sized funds in no man’s land.
Why This Matters: This mirrors what’s happening to mid-market B2B and SaaS companies. You either need to be a category-defining platform or a laser-focused niche player. The middle ground is becoming uninvestable and uncompetitive.
The Takeaway for B2B Founders: Pick a lane and dominate it. Being “pretty good” at several things is no longer a viable strategy in today’s market.
#5. 40% of VC Fundraising Capital Now Comes from AI-Focused Funds
The Shocker: Despite AI-focused funds representing only 15% of US VC funds, they account for ~40% of total capital raised in 2024. These funds also close 3x more often above their initial target size.
Why This Matters: LPs are flooding AI-focused funds with capital, creating a self-reinforcing cycle where AI companies get easier access to funding while non-AI companies face increased competition for remaining capital.
The Takeaway for B2B Founders: Even if you’re not an “AI company,” you need to articulate your AI strategy clearly. Funds are evaluating every deal through an AI lens, whether explicitly or not.
#6. Revenue Per Employee Is Skyrocketing for AI Companies
The Shocker: AI-exposed companies are seeing RPE of $808K compared to $420K for non-AI companies as of 2024. This gap has been widening dramatically since 2020.
Why This Matters: This isn’t just about productivity gains—it’s about AI companies being able to scale revenue without proportional headcount increases. They’re achieving what SaaS promised but often failed to deliver: true scalability.
The Takeaway for B2B Founders: Focus obsessively on RPE as a metric. If you’re not approaching $400K+ RPE, you’re going to struggle to compete with AI-native companies for talent and investment.
#7. The Rule of 40 Has Become the “Rule of 9”
The Shocker: The median Rule of 40 for enterprise software startups with $50M+ revenue dropped to just 9% in 2024, down from 21% in 2021. Only 13% of companies are above the traditional 40% threshold.
Why This Matters: The fundamental unit economics of SaaS are under pressure. Growth rates are declining faster than companies can improve margins, suggesting either market saturation or increased competition eating into pricing power.
The Takeaway for B2B Founders: Don’t just focus on the Rule of 40—focus on the rule of survival. In today’s market, sustainable growth at reasonable burn rates trumps growth-at-all-costs.
#8. Zombiecorns Are Multiplying (And It’s Getting Worse)
The Shocker: The enterprise unicorn herd now stands above 300 companies, with the median age hitting 11.5 years. Many are becoming “Zombiecorns” with poor revenue growth and unit economics, stuck in no man’s land.
Why This Matters: The IPO window is effectively shut, and many unicorns are too big for acquisition but too unprofitable for public markets. This creates a liquidity crisis that’s rippling through the entire ecosystem.
The Takeaway for SaaS Founders: Don’t optimize for unicorn status—optimize for sustainable business models. Many unicorns from 2020-2021 are now cautionary tales rather than success stories.
#9. Half of Enterprise Software Startups Need to Raise Within 12 Months
The Shocker: According to SVB’s proprietary data, 50% of US enterprise software startups need to raise capital or exit within the next 12 months based on their current burn rates.
Why This Matters: This represents a massive wave of funding pressure hitting the market simultaneously. With Series A rates already depressed and IPO markets closed, many companies will be forced into distressed sales or shutdowns.
The Takeaway for B2B Founders: Extend your runway now, before you need to. The fundraising market in the next 12 months will be brutal for companies without strong fundamentals.
#10. M&A at Seed Stage Has Jumped 13 Percentage Points Since 2019
The Shocker: A growing share of enterprise software startups are getting acquired at the seed stage, as larger strategics scoop up tech and talent early, and seed startups fail to meet Series A benchmarks.
Why This Matters: This represents a fundamental shift in exit strategies. Instead of building for the long term, many startups are now being designed as “acqui-hire” targets or technology bolt-ons for larger platforms.
The Takeaway for B2B Founders: Consider whether you’re building a feature or a company. If it’s a feature, plan for earlier exits. If it’s a company, make sure you have the capital and market position to survive the Series A gauntlet.
The Bottom Line
The enterprise software landscape has fundamentally shifted in ways that most of us didn’t see coming. AI isn’t just creating new categories—it’s rewriting the rules of venture capital, changing customer expectations around productivity, and creating a two-tier market where the winners win bigger but the losers lose faster.
The question isn’t whether AI will transform your business—it’s whether you’ll transform your business before AI-native competitors do it for you.
