Private Equity Giant Thoma Bravo Says 'SaaSpocalypse' Is Over, Sees AI as Major Tailwind for Software
Private equity giant Thoma Bravo's founder Orlando Bravo declared the so-called 'SaaSpocalypse' over, citing AI as a major growth driver for software companies. The feared collapse of SaaS valuations was triggered in February when Anthropic's advanced Claude AI tools sparked investor concerns that AI agents would displace traditional software. Bravo's comments signal growing confidence that software firms can adapt to and profit from AI rather than be destroyed by it.
Speaking at the SuperReturn International conference in Berlin, Orlando Bravo, founder and managing partner of Thoma Bravo — which manages nearly $200 billion in assets — told CNBC that fears of an AI-driven collapse of the software-as-a-service sector have proven unfounded. Bravo said his firm's portfolio companies, which collectively generate around $35 billion in revenue, are largely 'booming' due to AI adoption, with approximately 50% of new revenue now coming from AI and agentic products. He argued that critics underestimated software companies' ability to evolve alongside new infrastructure, including AI. Bravo predicted that software companies and AI will converge into new 'agentic solutions' for enterprise customers within the coming years. Supporting his optimism, the iShares Expanded Tech-Software Sector ETF surged 21% in May — its strongest monthly gain since October 2001 — and has risen more than 9% over a three-month period. Bravo also noted that the current moment remains one of discovery and adjustment, with unresolved questions around governance, cybersecurity, and AI return on investment still creating systemic pressure.
What's missing
The articles do not address potential conflicts of interest in Bravo's assessment, given that Thoma Bravo has significant financial stakes in software companies and would benefit from positive market sentiment toward the sector. Independent analyst views on whether the SaaS recovery is durable, or whether AI revenue claims from portfolio companies are auditable, are also absent.
How coverage differed
CNBC's coverage presents Thoma Bravo's bullish narrative largely on its own terms, framing the SaaSpocalypse as a resolved concern. The Economist's headline — 'Fear of the SaaSpocalypse is tormenting techland' — suggests a more cautious or skeptical framing, implying the anxiety may still be live rather than definitively over.
What different sources said
- CNBCCenter
The 'SaaSpocalypse' is over, says private equity giant Thoma Bravo. Here's why it sees an AI boom for software
- The EconomistCenter
Fear of the SaaSpocalypse is tormenting techland
Related
SpaceX IPO Makes Elon Musk World's First Trillionaire as Shares Surge 19% on Debut
SpaceX shares closed up 19% on their first trading day, pushing Elon Musk's net worth to approximately $1.11 trillion and making him the first individual in history to cross the trillion-dollar threshold. The company raised $75 billion at an IPO price of $135 per share, with shares closing near $161, giving SpaceX a market capitalization of roughly $2.1 trillion despite the company reporting a net loss of $4.94 billion in 2025. The milestone has drawn both investor enthusiasm and sharp criticism over Musk's social media conduct and concerns that the IPO's structure exploits passive index fund mechanics to extract wealth from ordinary retirement savers.
Delhi Power Bills to Rise for Some Consumers as Regulator Approves Higher Electricity Surcharge
Delhi's electricity regulator DERC has approved increased Power Purchase Adjustment Charges (PPAC) for distribution companies, raising bills for consumers in south, east, and central Delhi from July 2026. The hike follows a sharp rise in power procurement costs in April 2026, driven by higher summer demand and elevated fuel prices. The change also marks a structural shift from quarterly to monthly PPAC revisions, making electricity bills more responsive to real-time cost fluctuations.
SEC Proposes Repealing Rule 611 and Rule 610(e) of Regulation NMS
The Securities and Exchange Commission proposed on June 11, 2026, to rescind Rule 611 and Rule 610(e) of Regulation NMS, which govern trade-through protections and locking/crossing quotations in equity markets. Rule 611, in place for roughly two decades, requires trades to be executed at the best available price across exchanges. The proposal could reshape equity market structure and has implications for emerging areas such as tokenized stocks.