Builder.ai, once a $1.5 billion AI unicorn backed by Microsoft and Qatar’s sovereign fund, has collapsed under the weight of fraud and hype. Marketed as a no-code, AI-powered app builder, the company relied heavily on human developers and inflated its revenue through round-tripping deals. This 3,000-word deep-dive traces Builder.ai’s rise, the discovery of its fraudulent practices, and comparisons to similar scandals like Theranos, Zymergen, Frank, and WeWork. Most importantly, it outlines the lessons seed-stage SaaS CEOs must learn: transparency in technology claims, strong financial governance, resisting hype-driven valuations, and building customer trust over vanity fundraising. For SaaS founders navigating today’s AI-saturated market, Builder.ai is a cautionary tale: hype might win headlines, but integrity is the only true differentiator.
“Why the Dawn of Autonomous Procurement Is Still a Mirage”
The narrative that “software buys software” oversimplifies enterprise reality. While Jeff Morris Jr. argues that procurement is shifting to AI agents making algorithmic, impersonal buying decisions, the evidence says otherwise. AI agents today are experimental, risky, and far from handling the complexity of multimillion-dollar enterprise deals. Trust, relationships, compliance, and governance remain central to software procurement. Instead of replacing sales teams, AI is emerging as a co-pilot—augmenting research, recommendations, and workflows. Authoritative sources like Reuters, Goldman Sachs, and Gartner emphasize that full autonomy in procurement remains speculative. Enterprises still rely on human judgment, negotiation, and accountability. This blog explores why algorithmic procurement is a mirage, not a present reality, and why hybrid, human-in-the-loop models are the real future. For SaaS founders and executives, the takeaway is clear: invest in AI augmentation, but don’t abandon the sales craft that still drives trust and deals.
Why 35% of B2B SaaS Deals Are Lost in the Discovery Stage
Why do 35% of B2B SaaS deals die in discovery? Most losses stem from poor discovery, missed decision-makers, weak differentiation, and lack of trust. Learn how early-stage CEOs can fix this.