Bending Spoons wants to revive software castoffs. Berkshire is backing the plan
Less than four months into life as a public company, Bending Spoons got a big vote of confidence this week from Berkshire Hathaway.
TL;DR
- Bending Spoons, an Italian tech M&A firm, is acquiring struggling software companies, including Airtable and Miro, at significantly reduced valuations.
- Berkshire Hathaway has increased its investment in Bending Spoons, adding over $300 million to its existing stake, signaling confidence in the company's strategy.
- The acquisitions often result in job cuts and price increases for customers, as seen with Evernote's subscription adjustments.
- Bending Spoons' strategy contrasts with traditional private equity by focusing on long-term profit generation from acquired companies rather than quick exits.
- The rise of AI is creating a downturn for many SaaS companies, leading to a phenomenon referred to as the 'SaaSpocalypse', which Bending Spoons aims to capitalize on.
- Bending Spoons was founded in 2013 and went public on Nasdaq in June, raising approximately $1.7 billion.
- The company's revenue more than doubled in its first earnings report as a public company, driven almost entirely by acquisitions.