Why Eric Built the Consumer Subscription Software Practice

On the podcast, we talk with Eric about the opportunities and challenges of AI for consumer apps, what you can learn from Strava acquiring Runna, and the flawed thinking around ‘subscription fatigue’.

Top Takeaways:

💸 Value Overcomes Fatigue

Consumers would rather not pay for anything, but when a product delivers real value, they are happy to pay, even via subscriptions. Whether it’s training for a race, protecting memories, or learning something new, utility drives retention. Building long-term value wins every time.

🧠 Build a ‘Category Killer’

Eric identified ‘Strava for Pets’ and ‘Managing screen time and digital focus’ are opportunities for future ‘category killer’ apps. What do those two opportunities have in common? They are in categories where people are already spending a lot of money or have the opportunity to save a lot of time or money.

🤝 Build to be loved, not acquired

The best M&A strategy? Build something consumers truly love. Runna didn’t sell to Strava because they planned for it, building cool features Strava didn’t have. They sold because Runna was a fantastic product that personalized running in a way that expanded the market Strava couldn’t. 

⚙️ Growth requires tough choices

Conglomerates like Bending Spoons win through ruthless efficiency. They acquire apps, cut costs, and apply repeatable growth playbooks at scale. It can be controversial, but sometimes it takes an outsider to spot that the team that took an app to 1,000 users may not be the team to take it to 100,000 and beyond.

📈 AI changes discovery

Search behavior is shifting, and SEO is no longer the only path to discovery. AI tools are becoming the starting point for many journeys, forcing marketers to rethink how users find and engage with products. Adapting to this shift means reimagining acquisition, not just tacking on AI features.

About Eric Crowley: 

👨‍💼 Partner at GP Bullhound, a global investment bank and venture capital firm.

💰 Eric leads the Consumer Subscription Software (CSS) practice, advising high-growth companies on capital raises and acquisitions—recently including AllTrails and Runna.

📊 “If you build a product that consumers truly love, strategics will come calling. It’s that emotional connection that drives outsized outcomes.”

👋 LinkedIn

Follow us on X: 

• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights: 
[0:00] Opportunities in subscription apps
[7:12] Consumers still pay when the product delivers lasting value
[10:41] What Strava’s acquisition of Runna reveals about building apps that get bought
[17:30] Genuine consumer love over designing for a single acquirer
[19:27] Shifts in discovery forcing app marketers to rethink SEO and acquisition
[28:56] Using AI to move faster, create better products, and deepen moats
[32:47] How loosened restrictions could return profit margins for top apps
[46:43] The next big subscription plays
[52:04] Why Bending Spoons are forcing investors to rethink consumer tech
[57:11] What makes the Bending Spoons model work
[1:00:10] The Secondary market is changing how founders think about app exits
[1:01:41] Trends, exits, and the state of the subscription app ecosystem