Orlando Bravo: Software AI Valuation Cuts 'Very Warranted' — Thoma Bravo Splits Market Into Protected vs Vulnerable Categories

CNBC·high signal

Thoma Bravo co-founder Orlando Bravo told CNBC on March 17 that some software companies face 'very warranted' valuation decreases from AI disruption, while calling the broader selloff a buying opportunity for mission-critical systems. His framework: vulnerable software (generalist, light regulatory, low switching costs) dies when AI replicates it; protected software (deep domain, zero-tolerance workflows, heavy compliance) survives because failure has legal/financial/safety consequences. Design/engineering and data infrastructure trade at premiums; sales automation and content creation have been hit hardest.