"The Best Time to Invest": How AI Disruption is Reshaping Software Valuations | Ben Topor | Titan Capital Partners
Other People's Money with Max WietheShow Notes
This episode is sponsored by Pictet Asset Management and its AI-enhanced equity ETFs.
Pictet AI Enhanced US Equity ETF (PQUS):
Pictet AI Enhanced International Equity ETF (PQNT):
Max Wiethe sits down with Ben Topor, founder of Titan Capital Partners and author of Decoding the Software Landscape, to unpack the seismic shifts happening in the tech investment world. Topor explains how AI is commoditizing the software application layer and shares why the recent correction in software valuations makes this a prime time to invest. The conversation also delves into the booming secondary market, the structural differences between US and Israeli tech hubs, and how startups can build unbreachable AI-proof moats through distribution and proprietary data. Finally, Topor reveals the strategic tactics founders use to outmaneuver tech giants by moving in silence and misdirecting competitors.
Follow Ben Topor: https://x.com/ben_topor
Follow Max on X: https://x.com/maxwiethe
Follow Other People’s Money on:
Apple Podcast https://bit.ly/4e7QJ1M
Spotify https://bit.ly/3Yhaazi
YouTube https://bit.ly/3C63VXR
Timestamps:
00:00 Intro
02:10 Mapping the Software Landscape
03:45 What AI Changes in Software
09:13 AI Led M&A Wave
13:36 Valuations and Timing
15:34 Secondaries Liquidity Thesis
17:33 Pictet AI-Enhanced Equity ETFs
19:08 How Titan Buys Secondaries
21:07 Why Companies Stay Private
23:00 Finding Category Leaders
26:47 Reading Financial Symptoms
28:37 Mispriced Gems or Turnarounds?
31:25 Exit Paths Today
35:17 Investing in Israel
38:16 Cybersecurity Edge
41:08 Too Much Capital
43:38 AI Proof Moats
45:17 What Counts as Data
46:40 Private Credit Risks
50:36 Down Rounds Reframed
53:51 Titan’s Value Add
57:18 Competitive Maneuvering
01:02:37 Conclusion
More from Other People's Money with Max Wiethe
This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
James Elbaor, Founder and Portfolio Manager at Marlton LLC joins OPM to discuss why the private credit boom is officially over. Elbaor explains how artificial intelligence is threatening the SaaS businesses that make up over half a trillion dollars of private credit exposure, while also detailing how liquidity gates are currently trapping investors in massive interval funds like BCRED. The discussion concludes by exploring lucrative upcoming merger opportunities in the public BDC space and analyzing why asset managers utilizing permanent capital vehicles are being rewarded with premium market multiples.
Eric Wallerstein, Chief Macro Strategist at Clocktower Group, joins OPM to discuss why he sees substantial risk that the Fed is making a policy mistake by hiking into a supply shock that could cause a 2022 style bear market. He also explores the global coordination of rate hikes and why he believes the participation of lower growth economies like Canada indicate that this is a reaction to higher energy prices and not a substantially higher global neutral rate.
Try model portfolios available on Plutus and get a 45-day fee waiver when you signup with code OPM45: https://runplutus.com/mm-opm/login