This is Probably The Last Chance for the “Lost Generation” of SaaS and B2B

So the first half of 2025 is when VCs, founders and other have to start dealing with the “Lost Generation” in SaaS and B2B.  For real, calmly and rationally.

What’s the Lost Generation?

It’s folks at $10m-$300m ARR that just aren’t growing anymore. < 20% a year.

There’s been so much shock to the system:

• 2021: everyone grew like a weed
• 2022: multiples crashed
• 2023: buying and growth slowed
• 2024: AI absorbed massive budget

If growth slowed from 2023-2024, even 2022-2024, folks in some ways got a pass.  VCs, executives, and others understood.  No one was happy of course, but everyone sort of understood.

If you were running out of money, then folks had to deal with these issues earlier.  But most of The Lost Generation actually often has plenty of cash and runway now.  They often cut their way to break even some time ago.  So they were able to defer dealing with a lot of issues beyond getting lean — for a while.

But 2024 was your year to rebuild.  To leverage AI and where spend was going — not where it used to be.  And 2025 is the year to execute that rebuilding process and get back to real growth.  At least, materially more growth than before.

If you go from 15% growth last year to 30% this year?  That’s no OpenAI — but people will see and feel it.  Go from 18% growth last year to 40% this year?  Everyone will believe again.  It will inspire them.

2025 has to be the year when growth re-accelerates, and realistically, that means it has to start in Q1 and pick up in Q2

If not, everyone will begin to check out.  Not just some folks, but all of them.  Even finally, the believers.

If you’re in the Lost Generation, you can still break out.  The new age of AI-fueled spend on SaaS has just begun.

But it’s probably gotta be — right now.

AI has also fueled 1000s of new competitors. Often working even harder than most of us every did.