A market survey released by investment bank Lazard on Aug. 15 shows that investors in the secondary market for private equity fund stakes are changing how they assess potential software investments. The shift comes as buyers wait for the disruptive effects of artificial intelligence on business models and valuations to become clearer.
According to Lazard, investors are often redirecting capital to other opportunities during that waiting period rather than committing to software targets under the same framework used before the latest AI wave. The survey points to a broad reassessment of how software assets should be judged when product durability and pricing assumptions may be affected by AI.
The bank said 91% of respondents believe the main moat for software companies facing AI-related threats is a combination of proprietary data that AI cannot easily replicate and network effects. Lazard also said that, as of June this year, only 4% of respondents reported no change in the way they invest in the software sector.
BlockBeats reported on Aug. 15 that a market survey from investment bank Lazard found investors in the secondary market for private equity fund stakes are changing the way they evaluate potential software investment targets.
Lazard said those investors are often moving capital to other opportunities while they wait for the disruptive impact of AI on business models and valuations to become clearer.
What respondents said about software moats
According to the bank, 91% of respondents said the main moat for software companies trying to respond to AI threats and avoid product obsolescence is "proprietary data advantages and network effects that are difficult for AI to replicate."
Lazard added that, as of June this year, only 4% of respondents said their approach to investing in the software sector had not changed.
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