GTM Sauce

Bending Spoons · B2C · app acquirer and operator

Buy mature apps, let go of almost all staff, and run them on one central team

Evernote kept ~2 of hundreds of staff and still rates 4.4 stars; company valued at $11B

Workedportfolioexit-mapricing

What they did

Bending Spoons buys apps/subscription businesses (e.g. Evernote, AOL) and within the first month lets go of ~97% of the acquired employees, lifting the product onto its existing ~600-person team rather than shutting it down. Then optimizes pricing and marketing, where it is expert. Hosts add: products with years of locked-in user data (Evernote) tolerate higher prices, and a large user base (AOL's older email users) can be cross-marketed other apps.

What happened

Raised at an $11B valuation; Evernote kept a 4.4-star rating; Crowley calls the operational efficiency unmatched.
Stage
scale
“They're not shutting down the business, they're not just taking it as cash flow. They are just lifting the business off whatever infrastructure and team was done and they're putting it on to their existing team.”
Eric Crowley
“The definition of optimize is probably change over time, but they're experts at pricing, they're experts at marketing.”
Eric Crowley

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