Bending Spoons accelerated growth by acquiring stagnating tech brands like Evernote, Meetup, and Vimeo, then restoring profitability through aggressive cost-cutting and price increases. The firm announced the acquisition of AOL and a $270 million raise that pushed its valuation from $2.55 billion to $11 billion. A growing cohort of investors follows a 'buy, fix and hold' playbook, purchasing underpriced VC-backed software companies, reviving cash flows, and keeping them long-term rather than flipping them. Curious raised $16 million in 2023 to buy stalled software firms and has acquired five businesses, including UserVoice.
"Italian company Bending Spoons flew largely under the radar - until last month. In a span of 48 hours, the company announced the acquisition of AOL and a massive $270 million raise, quadrupling its valuation to $11 billion from $2.55 billion set in early 2024. Bending Spoons has grown rapidly by acquiring stagnating tech brands like Evernote, Meetup, and Vimeo, then turning them profitable through aggressive cost-cutting and price increases."
"Andrew Dumont,the founder and CEO of Curious, a firm that also acquires and revitalizes what he calls "venture zombies," is convinced this "hold forever" strategy will become increasingly prominent in the coming years as AI-native startups make older VC-backed software businesses less relevant. "Our belief is that the venture power law, in which 80% of companies 'fail' produces many great businesses, even if they're not unicorns," Dumont told TechCrunch."
Read at TechCrunch
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