“AI + VC = success”. BULLSH*T.
Builder.ai just torched $450M...
Crowned as a unicorn.
Paraded by Microsoft and Qatar’s finest.
Promised “AI-powered app building for the world”.
But hype has zero loyalty.
Here’s what they really built:
↳ Inflated revenue targets
↳ 1,500-person payroll before product-market fit
↳ Human engineers duct-taping every so-called “automated” delivery
↳ A fantasy economy, burn now, apologize later, hope the VCs don’t ask real questions
When you scale lies, insolvency shows up faster than product-market fit.
Builder.ai hit $1B and burned out in under a year.
Revenue revised down.
Middle East “cash cows” vanished.
Layoffs: 35% gone overnight.
Debt ballooned, creditors circling for scraps.
Their “AI” was a smoke show.
Human sweat behind every screen, desperate to mimic automation.
When the audits landed, so did the founder’s resignation.
$7M left in the bank.
Game over.
But this is the real startup pandemic nobody wants to name:
Founders high on VC money, overdosing on PR, chasing headlines not customers.
Burn is seen as “momentum”.
Overpromising is rewarded.
Delivery is optional.
You want a playbook for destruction?
1/ Fuck up governance, the rot spreads unseen.
2/ Ignore the mounting debt pile.
3/ Raise for the photo ops, not the product.
4/ Confuse “hiring” with “success.”
5/ Assume that more funding = more truth. It doesn’t. It buries lies deeper.
Don't blame market conditions.
Don’t blame competition.
Blame your own bullshit.
Heavy funding isn’t a badge.
It’s a lit fuse.
If your foundation is weak, that fuse runs out FAST.
At BuddiesHR, we followed one rule: No lying to ourselves.
No dressing up manual labor as AI.
No “build it bigger” before “build it right”.
Real customers.
Real risks.
Slow, painful, honest f*cking progress.
Founders:
Stop chasing validation from VCs who don’t care if you live or die.
Stop hyping “AI” when you actually mean “underpaid engineers typing faster.”
Stop hiring for the press release, start building for the user.
Or get ready to watch everything burn, and nobody will feel sorry for you.
Agree? Hate it? Got a better excuse for why founders keep blowing up their own companies?
Let's hear it.
----------
👋 Hey, I'm J.Y!
I'm the co-founder of BuddiesHR, the #1 Employee Engagement Software that lives in Slack.
I post 1x a day about my journey and share what I've learned along the way.
Follow me for more content like this 👆
P.S. I'm writing a no-BS B2B SaaS playbook with everything I've learned. Want a free copy? Click “Visit my website” to sign up.