TechCrunch Startup News Why ‘hold forever’ investors are snapping up venture capital ‘zombies’
Nov 26, 2025
Explore the innovative 'buy, fix, and hold' model employed by Bending Spoons and its long-term investment strategy. Discover how Curious targets 'venture zombies,' breathing life back into struggling startups. Learn about the pricing advantages these acquisitions offer and how Quick turnarounds can yield impressive profit margins. The podcast delves into the contrasting priorities of venture capitalists focused on growth versus those focused on consistent cash flow. It's a deep dive into the emerging approach of resuscitating distressed startups.
AI Snips
Chapters
Transcript
Episode notes
Venture Zombies Are A Growing Market
- Venture 'zombies' are older VC-backed software companies that stall but still generate revenue and can be bought cheaply.
- Andrew Dumont argues AI-native startups will make many such businesses less relevant, increasing acquisition opportunities.
Buy, Fix, And Hold Playbook
- Buy small recurring-revenue software companies at low multiples and apply operational fixes to return them to profitability.
- Then use those cash flows to fund further acquisitions instead of chasing VC-scale exits.
UserVoice Example Of A Turnaround
- Curious bought UserVoice, a 17-year startup that had raised VC but stagnated due to cap-table misalignment.
- Dumont said stagnant companies often sell for around 1x annual revenue versus healthy SaaS at ~4x.