This isn't happening. The past six months has been rough on public B2B SaaS valuations, but the impact is a lot wider than just B2B SaaS (its all non-S&P10 software), and valuations are just vibes in the end. Most of these companies are, financially, doing pretty well; seeing key metric growth, including revenue and profit. This makes sense: AI does not fundamentally change the bargain SaaS brought to the table, that companies would rather pay someone to solve their problems than solve them themselves. However, the stock market doesn't care about this. The stock market doesn't care about anything; it behaves irrationally and non-sensically, and trying to derive any sense of how stable, strong, or successful a company is from stock market valuation is like using lines of code to claim that a software project is really good.

>that companies would rather pay someone to solve their problems than solve them themselves.

Are they not able to just engage AI to solve those problems now? E.g. this morning I saw an app that did something interesting to me for $20 a month. 20 minutes in Gemini and I had a functional app that replicated the behavior. SaaS are more complex but give me a small team and a couple months and we could replicate most any of them.

Equity markets both private and public are mangled today, for a wide range of reasons which I wont get into.

Financial performance e.g. revenue is what counts right now as any hard-evidence.