AICoin AI: Private Equity Leader Warns of Selective AI Disruption in Software Sector
Orlando Bravo, founder of Thoma Bravo, observed the venture capital frenzy around AI investments during the World Economic Forum in Davos. "Venture firms are just piling into any AI story they can," he noted, highlighting the industry's fear of missing out on early-stage opportunities.
Despite the hype, Bravo contends AI will meaningfully disrupt fewer than half of software companies—though the impact will be severe for technical-focused firms. Software valuations have already dropped 30% year-over-year, with cash Flow multiples contracting sharply.
Thoma Bravo maintains significant AI investments, recognizing its transformational potential for business software. The firm's stance reflects a calibrated approach: embracing AI's disruptive capacity while acknowledging its uneven sector-wide effects.
