The software industry is facing its biggest crisis in over a decade. For private market investors who once viewed software as a safe bet, able to deliver predictable revenue streams and steady growth, there is deep uncertainty. But there are also real reasons for optimism, because the sector has been through a similar cycle before.
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Petr Rojicek
For institutional investors, navigating this complex and fast-moving landscape comes down to one thing: manager selection.
Key Takeaways
- The software industry is facing its biggest crisis in over a decade, as AI calls into question long-held assumptions about the sector.
- The blunt truth is that B2C applications with low barriers are facing obsolescence.
- In the AI era, value is moving away from generic consumer-facing apps and towards those who own unique niche data and trusted infrastructure.
- Owning sensitive datasets will become the core structural advantage, favouring some established incumbents protected by networks, relationships, and customer.
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