Domain Expertise

Thoma Bravo co-founder Orlando Bravo sees the software sector as undervalued, particularly due to a lack of profitability. He notes that many public software companies rely on revenue multiples, which he considers risky. Bravo believes companies with deep, decades-long domain expertise are currently trading at attractive valuations, especially as AI integration highlights the value of this specialized knowledge. While acknowledging AI’s progress, he stresses that it cannot fully replace human R&D expertise in developing complex enterprise solutions.