News Summary

Bending Spoons, an Italian company, has made headlines by acquiring stagnating tech brands like Evernote, Meetup, and Vimeo, turning them profitable through cost-cutting and price increases. This approach, which mirrors private equity but differs in its ‘hold forever’ strategy, is gaining traction among investors and companies like Curious, led by Andrew Dumont. Dumont’s firm focuses on acquiring ‘venture zombies’—companies that have stalled in growth and cannot secure further investments—and revitalizing them for profitability. Curious has raised $16 million to pursue this strategy and plans to acquire 50 to 75 startups within the next five years. These companies typically generate $1 million to $5 million in recurring revenue annually. The model has been validated by Bending Spoons’ recent valuation hike to $11 billion, quadrupling from its earlier valuation. Despite the success stories, Dumont notes that the process requires significant effort and isn’t likely to attract a lot of new competition.