Venture capital firms are aggressively chasing artificial intelligence investments amid rising fear of missing out, according to Thoma Bravo co-founder Orlando Bravo.

Speaking to Bloomberg Television at the World Economic Forum in Davos, Bravo said valuations for AI startups have reached “astronomical” levels as investors rush into early-stage deals.

“Venture firms are just piling into any AI story they can,” Bravo told Bloomberg, adding that the “FOMO of being in any AI deal as early as you can in the private markets is pretty remarkable”.

The AI boom has weighed heavily on listed software companies, Bravo said, with key players down about 30% year-on-year and free cash flow multiples falling sharply. He warned that AI could disrupt many software businesses, particularly those with technical core offerings.

Despite the risks, Bravo said Thoma Bravo remains committed to enterprise software and sees AI as “transformational”. Technology companies account for roughly 80% of the firm’s portfolio, and Thoma Bravo manages about $180bn in assets.

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