Startup ARR is less secure than ever, new research shows

Madrona’s survey of 150 enterprise IT professionals found 74% will increase AI budgets within a year, yet fewer than half of AI pilots reach full production and 77% of enterprises reassess AI vendors every six months. A16z research shows over half of 50 technical buyers prefer outcome-based pricing rather than token-usage models, highlighting why AI-driven ARR is now less secure despite growing spend.