Simon Glairy, a recognized authority in risk management and AI-driven assessment, joins us to discuss the remarkable market debut of Bending Spoons. As the software industry grapples with the disruptive potential of artificial intelligence, this Milan-based firm is proving there is a massive financial upside in revitalizing “venture zombies”—once-great brands like Evernote and Meetup that have lost their momentum. Glairy provides insight into how strategic cost-cutting, price adjustments, and a permanent ownership model have turned these aging assets into a powerhouse worth over $25 billion.
How does Bending Spoons successfully revitalize “venture zombie” brands like Evernote through aggressive cost-cutting while still maintaining their market relevance?
From a risk management perspective, it comes down to a highly disciplined operational framework that prioritizes profitability over the growth-at-all-costs mentality of original venture backers. When Bending Spoons acquires aging but popular brands like AOL or Vimeo, they immediately implement a strategy of streamlining operations and raising prices to reflect the service’s actual value. Last year, this focus resulted in subscriptions accounting for a staggering 84% of their total business, providing a stable and predictable revenue stream. By launching targeted new features, they manage to retain existing users while shedding the excess weight that led to their “zombie” status in the first place.
The company recently saw a 40% surge on its first day of trading; what specific financial indicators from their recent filings explain this intense investor confidence?
The financials show a dramatic year-over-year turnaround that clearly caught the market’s attention during the IPO. In the first quarter, the company reported $601 million in revenue and managed to generate a net income of $27.4 million, a complete reversal from the $112 million net loss they posted during the same period last year on $259 million in revenue. This successful pivot to profitability allowed them to raise $1.68 billion in their offering and reach a market capitalization of $25.7 billion. Investors are essentially rewarding the co-founders for proving that a portfolio of “stalled” assets can be more lucrative than many high-burn modern tech startups.
With many traditional SaaS companies losing value due to fears that AI will displace their business models, why hasn’t Bending Spoons faced the same skepticism?
In the world of AI-driven risk assessment, we see a palpable anxiety that automated tools will render traditional software functions obsolete, but Bending Spoons acts as a hedge against that uncertainty. While other software shares tumbled earlier this year, Bending Spoons closed its first day at $40.50, nearly 40% above its $29 IPO price, because investors value established ecosystems. Their approach isn’t just about software; it’s about the data and the community built around brands like Meetup and Evernote over the last 13 years. In a world where AI is the great unknown, a company that can turn a massive loss into a $27.4 million profit through proven management feels like a very safe harbor.
You’ve noted that Bending Spoons has no plans to sell these businesses; how does this “hold forever” strategy change the risk profile for investors?
This “buy, fix, and hold” strategy significantly lowers the long-term risk profile by removing the pressure of a forced exit in a potentially down market. Instead of looking for a quick windfall, the company focuses on the compounding value of their assets, such as the massive $1.68 billion they just raised to further expand their portfolio. This long-term horizon allows the five co-founders to reinvest in the platforms without the artificial constraints of a standard fund lifecycle, ensuring that brands like Vimeo or Eventbrite remain cash-generative. It shifts the focus from speculative valuation to consistent earnings growth, which is why major backers like Baillie Gifford and Fidelity have stayed committed to the Milan-based firm.
What is your forecast for the future of Bending Spoons and the wider market for acquiring stalled software firms?
I believe we are entering a major consolidation phase where firms like Bending Spoons will aggressively acquire more “venture zombies” as the cost of capital remains high for struggling startups. With a market cap of $25.7 billion—more than double their previous private valuation of $11 billion—they have the financial muscle to outbid smaller competitors like Arising Ventures or Calm Capital. As long as they can maintain that 84% subscription revenue mix, they will likely continue to outperform the broader SaaS market. My forecast is that we will see them move toward even larger acquisitions, potentially targeting major tech firms that have fallen out of favor but still possess millions of active, paying subscribers.
