AI-native startups have captured 63% of the application market (up from 36% last year), earning $2 in revenue for every $1 earned by incumbents. Product velocity and PLG motions driving startup advantage.
90%
Overall ConfidenceBased on 5 weighted dimensions
Confidence Breakdown
Authority
30%40Tier 4
Data Quality
25%80Level 4
Recency
20%808-30 days
Corroboration
15%1003 sources
Specificity
10%75Level 3
Data Points(3)
Startups captured 63% of AI app market, up from 36% last year
Dec 29, 2025Startups earn $2 for every $1 earned by incumbents in AI applications
Dec 29, 202571% startup share in product + engineering AI tools
Dec 29, 2025