Software companies are now in a split. The line is gray, and it keeps moving between what is software (Wix, traded at $4B on $2B revenue) and what is AI (Lovable, valued at $13B on $0.5B revenue).

Earlier this year, software companies' valuations crashed based on a fear that AI will replace software. While the index seems a bit more stable, many stocks did not ercover, and maybe never will.

Anyone building SaaS or investing in SaaS today should have multiples in mind. This impacts valuations early on, as this is what you could grow into, and we are valued based on that potential.

Made a report on where we're at, courtesy of Fabel https://app.agentgrid.io/artifacts/BSSoRuFsywQAyzxDAsbmUg