Failed 2025

    Builder.ai

    You can't fake AI automation with offshore human labor and inflate sales by 75%. Auditors will find out.

    Founded → Closed

    2016 → 2025

    Funding Raised

    $445M

    Industry

    AI/SaaS

    Country

    UK

    IdeaProof AI Failure Score

    85/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    45
    Burn Rate Risk
    85
    Founder Risk
    90

    Full Analysis

    Builder.ai raised $445M claiming to use AI to build custom apps. In reality, much of the work was done by hundreds of offshore human developers. Internal audits slashed 2023-2024 revenue projections by 75%. The company operated without a CFO since July 2023, and when lenders seized $37 million of its $42 million in cash, it was game over. Founder Sachin Dev Duggal styled himself as "chief wizard." The company filed for bankruptcy in May 2025.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Builder.ai.