The first half of 2025 is when VCs, founders, and others have to start dealing with the 'Lost Generation' in SaaS and B2B.
The Lost Generation refers to companies at $10m-$300m ARR that are growing at less than 20% a year.
2021 saw rapid growth, 2022 experienced a crash in multiples, 2023 saw buying and growth slow, and 2024 marked a significant AI budget absorption in the industry.
2025 needs to be the year of re-accelerated growth for the Lost Generation to inspire belief and success in the industry.