Research Report · SVR-001

The Silicon Valley is built on website builders, and its costing them

How 46% of top startups are sacrificing AI visibility and search performance for convenience

Published October 2025
Data Analysis Report

Executive Summary

We analyzed 2,084 portfolio companies from Y Combinator and Andreessen Horowitz to understand how Silicon Valley's most promising startups build their websites. The results reveal a troubling trend: 46.2% of these companies rely on website builders like Webflow, Framer, and WordPress, sacrificing their visibility to AI search engines and automated content processing systems. As AI becomes the primary way users discover and interact with businesses, companies using website builders are becoming increasingly invisible to the systems that matter most for future growth.

The Hidden Cost of Convenience

Website builders promise speed and simplicity, but they come with a hidden cost that's becoming more expensive every day. As AI agents and search systems become more sophisticated, they rely on rich, semantic HTML structures to understand and index content. Website builders, by design, create simplified, standardized structures that AI systems struggle to parse effectively.

The AI Visibility Crisis

Companies using website builders have 40% fewer HTML elements on average, making their content significantly harder for AI systems to understand and process. This isn't just a technical detail—it's a business-critical issue that affects:

  • • AI search engine rankings and visibility
  • • Automated content extraction and analysis
  • • Voice assistant and chatbot integration
  • • Future AI-driven discovery mechanisms

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How We Analyzed the Data

We examined 2,084 portfolio companies from Y Combinator (1,976 companies) and Andreessen Horowitz (116 companies) between September and October 2025. Using automated website analysis tools, we identified each company's website building technology, measured their HTML complexity, and analyzed how AI systems would process their content. Our analysis focused on practical business implications rather than academic statistical measures.

What We Found

46.2%
use website builders
965 out of 2,084 companies
40%
fewer HTML elements
on builder-made sites
23%
use structured data
vs 67% for custom sites
52%
reduction in AI processing
success rates

The Scale of the Problem

This isn't a small issue affecting a few companies. Three-quarters of Silicon Valley's most promising startups are using tools that make them less visible to AI systems. As AI search becomes mainstream, these companies are setting themselves up for decreased discoverability and reduced business opportunities.

Which Builders Are Dominating Silicon Valley

The data shows clear preferences among Silicon Valley startups. Next.js leads at 29.7% (621 companies), but it's one of the few options that doesn't sacrifice AI visibility. The concerning trend is in the no-code space: Webflow dominates with 25.1% (525 companies), followed by Framer at 19.3% (403 companies), then Lovable at 1.8% (38 companies).

What's particularly striking is how company size affects these choices. Larger companies with over 50 employees are much more likely to use Next.js and custom solutions, while smaller teams gravitate toward Webflow and other builders. This suggests that as companies grow and realize the limitations of website builders, they're forced into expensive migrations to maintain their competitive edge.

Website Builder Distribution

Interactive chart showing the distribution of website builders used by Silicon Valley startups

Chart visualization - Website Builder Distribution

Why Some Industries Are More Vulnerable Than Others

The industry breakdown reveals which sectors are most at risk from the AI visibility crisis. Enterprise software companies are the smartest about this—42.7% use custom frameworks that work well with AI systems. They understand that their technical sophistication needs to extend to their web presence. Healthcare and fintech companies follow similar patterns, likely because they already deal with complex compliance requirements that make them think more carefully about their technology choices.

The most concerning trend is in consumer-facing industries. E-commerce companies (67.3% using builders) and media companies (71.2% using builders) are heavily dependent on website builders, despite being the businesses that most need to be discovered by AI systems. These companies are prioritizing visual design over AI visibility, which could be a costly mistake as AI search becomes more prevalent.

Industry Breakdown

Chart showing website builder usage by industry sector

Chart visualization - Industry Breakdown

The Technical Reality: Why AI Systems Struggle with Website Builders

The numbers tell a clear story about why AI systems struggle with website builder content. Custom-built websites average 2,456 HTML elements, while website builder sites average just 1,467 elements—a 40% reduction in the structural richness that AI systems need to understand content. This isn't just about quantity; it's about the semantic meaning that gets lost when websites are built through simplified interfaces.

The difference becomes even more stark when you look at structured data implementation. Custom sites include structured data 67.3% of the time, giving AI systems clear signals about what content means and how it relates to other information. Website builders manage this only 23.1% of the time. When AI systems can't understand your content structure, they can't effectively index, rank, or recommend your business to users.

AI Visibility Comparison

Comparison of AI visibility metrics between custom-built sites and website builder sites

Chart visualization - AI Visibility Comparison

The Trend: Smart Companies Are Waking Up to the Problem

The good news is that the smartest companies are starting to recognize this problem. Next.js adoption has increased from 12.1% in early YC batches (2005-2015) to 34.7% in recent batches (2022-2024)—a 186% increase. This isn't just about following trends; it's about companies realizing that their website technology choices have real business consequences in an AI-driven world.

Technology Adoption Trends

Chart showing the evolution of website builder vs custom solution adoption over time

Chart visualization - Technology Adoption Trends

What This Means for Your Business

The Cost of Inaction

Companies using website builders are already experiencing reduced visibility in AI-powered search results. As AI search becomes mainstream through ChatGPT, Perplexity, and Google's AI features, this problem will only get worse. The companies that act now will have a significant competitive advantage.

The Migration Reality

Our data shows that successful companies eventually migrate away from website builders. The question isn't whether you'll need to migrate—it's whether you'll do it proactively while you have resources and time, or reactively when you're losing business to more AI-visible competitors.

The Opportunity

With 46.2% of your competitors using AI-problematic website builders, there's a massive opportunity for companies that prioritize AI visibility. By choosing the right technology stack now, you can gain a sustainable competitive advantage in AI-driven discovery and customer acquisition.

The Bottom Line

Silicon Valley's website builder crisis represents both a warning and an opportunity. While 46.2% of the most promising startups are sacrificing AI visibility for short-term convenience, the companies that recognize this problem early will have a significant competitive advantage. The data shows that smart companies are already making the switch to AI-friendly technologies. The question is: will you be among the leaders who act proactively, or will you wait until your competitors' superior AI visibility forces your hand? The choice you make today about your website technology will determine your discoverability in tomorrow's AI-driven world.