Reddy: Average SaaS Companies Ranked Third Or Lower Will Not Survive AI
Aneesh Reddy · How Capillary Built a Culture That Created 50+ Founders | Aneesh Reddy · Apr 23, 2026 · at 7:12
Aneesh Reddy is the founder of Capillary Technologies, discussing enterprise software market dynamics and why lower-ranked SaaS competitors struggle with profitability.
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“Unfortunately I feel, especially in the AI world now, that the average company you know, the average product or the average company, unfortunately will not make money. If you look at any US public markets, right? Every category has four, five companies that I've listed, right? The first and the second sometimes make money. The third, fourth, fifth, sixth don't make money. You know, and I feel that is a, that is going to be even more pronounced in the AI world. That the average product will not make money. So suddenly now all of these three, four, five, six, seven, all the way to 20 don't really have a right to exist in many senses.”
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