Orlando Bravo, co-founder of private equity firm Thoma Bravo, said the "SaaSpocalypse" is finished during an interview on June 10, 2026 [1].
Bravo's assessment signals a shift in sentiment for the software-as-a-service sector, which has struggled with fears that generative AI would replace existing software models. His outlook suggests that AI is now viewed as a catalyst for growth rather than a disruptive threat to business viability.
Speaking at the SuperReturn conference in Berlin, Germany, Bravo said that AI offers an "enormous tailwind" for software companies [2]. He said that worries surrounding artificial intelligence wiping out SaaS businesses have cooled [3]. According to Bravo, new AI capabilities are lifting SaaS businesses instead of crushing them [4].
Thoma Bravo, which manages roughly $200 billion in assets [5], has a significant stake in the software market's trajectory. The sector has faced extreme volatility recently, including a 48-hour sell-off in February that wiped about $285 billion from SaaS valuations [6].
Despite the optimistic outlook on growth, Bravo said that the rebound is uneven [7]. He also said that AI-agent costs are mounting [7]. This indicates that while the existential threat to the SaaS model may have subsided, the financial burden of implementing AI remains a challenge for many firms.
Bravo's comments come as the industry attempts to stabilize after a period of rapid valuation swings. The transition from fear of replacement to the adoption of AI as a tool for expansion marks a pivotal moment for private equity, and venture capital investments in software [2, 4].
“AI offers an "enormous tailwind" for software companies.”
The shift in narrative from a 'SaaSpocalypse' to an AI-driven boom suggests that the market is moving past the initial shock of generative AI. However, the mention of mounting AI-agent costs and an uneven rebound indicates that the sector is entering a phase of operational consolidation where efficiency and cost management will be as critical as growth.
