💰 Young AI companies generate revenue faster than previous tech companies

💰 Young AI companies generate revenue faster than previous tech companies

AI startups reach million-dollar revenues in just eleven months. This can be compared to 15 months for the previous generation of SaaS companies. Top AI companies reach $30 million in annual revenue five times faster than previous software companies.

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  • AI startups reach million-dollar revenues in just eleven months.
  • This can be compared to 15 months for the previous generation of SaaS companies.
  • Top AI companies reach $30 million in annual revenue five times faster than previous software companies.

Rapid growth for AI startups

According to a new analysis from Stripe, artificial intelligence startups are generating revenue faster than previous waves of software companies. Data shows that leading AI companies reach millions of dollars in sales within a year - significantly faster in a startup's lifecycle compared to comparable non-AI tech companies, reports Financial Times.

Stripe analyzed payment information for the 100 AI companies with the highest turnover. This group was compared to a similar group of promising Software-as-a-Services startups (SaaS) from 2018.

It took an average of 11 months for AI startups to reach one million dollars in annual revenue. This can be compared to 15 months for the previous generation of SaaS companies.

Even more remarkable is that AI startups that have scaled up to more than $30 million in annual revenue achieved this milestone in 20 months - five times faster than SaaS companies.

Global demand for AI services

The demand for generative AI services that can generate text, code, images, sound, and video is global. According to Stripe's data, approximately 56 percent of AI companies' revenue came from abroad.

Byron Deeter, partner at Bessemer Ventures who invests in SaaS companies, believes that AI startups have an advantage compared to larger software companies. They can quickly launch new products and features built on rapidly changing AI models from companies like OpenAI, Anthropic, Google, and Meta.

Deeter notes that many AI companies are going from zero to tens of millions of dollars in revenue in just a couple of years, demonstrating the rapid growth within the sector.

Read The Angry Optimist about AI not being a bubble:

🦾 Keep calm, AI is not a bubble
The stock market went down, panic arose and the pessimists proclaimed in panic: The AI bubble is bursting. That is nonsense.
Warp NewsMathias Sundin

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