Thoma Bravo co-founder Orlando Bravo said that valuations for artificial intelligence companies are "at a bubble," comparing it to the dotcom era.
But 1 cardinal quality successful the marketplace now, helium said, is that ample companies with "healthy equilibrium sheets" are financing AI businesses.
Bravo's backstage equity steadfast boasts much than $181 cardinal successful assets nether absorption arsenic of June, and focuses connected buying and selling endeavor tech companies, with a important chunk of its portfolio invested successful cybersecurity.
Bravo told CNBC's "Squawk connected the Street" connected Tuesday that investors can't worth a $50 cardinal yearly recurring gross institution astatine $10 billion.
"That institution is going to person to nutrient a cardinal dollars successful escaped currency travel to treble an investor's money, ultimately," helium said. "Even if the merchandise is right, adjacent if the market's right, that's a gangly order, managerially."
The influential tech capitalist besides emphasized that there's a "big difference" betwixt the dotcom illness and the existent scenery of AI.
"Now you person immoderate truly large companies and immoderate large equilibrium sheets and steadfast equilibrium sheets financing this activity, which is antithetic than what happened astir 25 years ago," helium said.
Bravo said his steadfast is looking for opportunities successful bundle and sees AI arsenic a boost to the industry.
"With AI, you person truthful overmuch much to merchantability them, agentic solutions, an easier mode for the lawsuit to prosecute with your product," helium said. "That is simply a big, big, new, breathtaking tailwind for the industry."
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