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The Playbook on Buying and Running Companies Forever

The Playbook on Buying and Running Companies Forever

24 segments available

Luca Ferrari, co-founder of Bending Spoons, joins Patrick O'Shaughnessy in Milan to discuss building Europe's most unique tech company. Bending Spoons operates as 25% private equity, 75% tech company - acquiring digital businesses to own and operate forever while completely transforming them. Ferrari shares the journey from near-bankruptcy with an €11 billion valuation, major acquisitions like Evernote, AOL, and Vimeo, and their radical approach to talent density with 800,000 job applications for 250 hires. The conversation covers their debt financing strategy, why consensus is overrated, the power of permanent capital thinking, and how AI will impact their portfolio. #BendingSpoons #TechAcquisitions #EuropeanTech #MandA #Tech#StartupStory #TechLeadership #saas #TechCulture #investlikethebest TIMESTAMPS 00:00:00 Intro 00:00:30 What is Bending Spoons? 00:04:30 Why Europe Lacks Trillion-Dollar Companies 00:07:25 The First Test: From Failure to Founding 00:10:52 The McKinsey Years & Funding Co-founders 00:13:24 The Strategic Insight: Why M&A Over Building 00:16:13 Structural Advantages of the Platform Model 00:21:00 Talent as the Ultimate Edge 00:22:50 Rejecting Consensus 00:26:28 Early Days: From $10K to Billions 00:30:52 The Evernote Transformation 00:36:17 Pricing Power & Monetization Sophistication 00:40:32 The Art of Valuation & Deal Discipline 00:44:52 Financing Strategy: Bootstrapping to Billions 01:01:47 No Variable Pay: A Contrarian Approach 01:04:14 Areas of Dissatisfaction & Regulatory Frustration 01:09:25 Raising Europe's Largest Private Debt Round 01:13:28 AI's Impact on Software Businesses 01:17:26 Building Culture: State of the Spoon & Retreats 01:20:20 Why There Aren't More Bending Spoons 01:23:35 The Kindest Thing

Segments Timeline

1
0:00 - 1:30
1:30 duration106 words

Startup Lessons and Early Struggles

The speaker reflects on their startup journey, including the challenges faced and the lessons learned during the initial failures.

"I remember the stress levels with working our ass off for 3 years on the startup which failed. Having this little money to try to make the dream come true. I had a real breakdown. 10 years go by and y..."

2
1:30 - 3:01
1:31 duration82 words

Bending Spoons Overview

Luca shares insights about Bending Spoons’ unique business model and growth strategy, focusing on acquiring companies and deep operational integrations.

"Right. Um we are a pretty unusual beast. Um yeah, unique almost. I think as far as I can tell um I think a good representation would be 25% private equity 75% tech company meaning we acquire companies..."

3
3:01 - 4:31
1:30 duration47 words

Future Vision of Bending Spoons

Luca discusses the ambitious long-term vision for Bending Spoons, focusing on cultural excellence and creating a leading institution.

"We felt inspired at the prospect of building like the company being our product, building an institution, you know, Burkshire Hataway, that sort of company that people look at and think was a defining..."

4
4:31 - 6:03
1:32 duration56 words

Challenges Facing European Startups

A conversation about the challenges faced by European startups and the reasons behind their relative scarcity compared to the US and China.

"it was actually Daniel E at Spotify who introduced us originally and obviously he's built one of the great you know European origin businesses why do you think there are not more of them like obviousl..."

5
6:03 - 7:35
1:32 duration52 words

The European Entrepreneurial Spirit

Discussion on the importance of creating a homegrown entrepreneurial ecosystem in Europe.

"I think the main reason is a matter of uh default old. Why does California have so much has had so much success over the decades? One of the reason is you have seen incredible companies being created ..."

6
7:35 - 10:38
3:03 duration64 words

Origins of Bending Spoons

Luca recounts the early days of Bending Spoons, including lessons learned from previous failures and the strategy for starting anew.

"At the very beginning, we actually had another startup called Evertale and that was a failure. We learned a lot and actually the strategy for Bending Spoons, we came up with it through the failure of ..."

7
10:38 - 12:10
1:32 duration45 words

Survival through Adversity

Luca shares personal anecdotes about the stress and breaking points faced during the early startup days, leading to crucial turning points.

"I remember the stress levels with after working our ass off for 3 years on the startup which failed, having this little money to try to make the dream come true and uh and failing miserably at this sa..."

8
12:10 - 13:42
1:32 duration47 words

Funding and Early Strategies

Exploration of how early funding strategies and jobs were structured to support Bending Spoons during its formative years.

"That was the previous startup. Okay. Yeah. It's a cool story. At least I think it's cool. Um we basically we graduate two friends of mine Francisco Mateo who are happen to be co-ounders at Ben too. An..."

9
13:42 - 15:12
1:30 duration38 words

Understanding M&A Strategies

Luca discusses the decision-making processes surrounding M&A strategies that inform the direction of Bending Spoons.

"And so between um Evertale and Bending Spoons, what was the where did the insight come from to be sort of an M&A driven acquirer of businesses rather than building them? Evertale was your startup by t..."

10
15:12 - 16:45
1:33 duration38 words

Insights from Observing Failures

Lessons learned from observing peers' startup journeys which shaped Bending Spoons' approach to risk and opportunity assessment.

"And so we thought being really good at the functional knowledge and skills necessary to run a digital business really well is probably a matter of if assuming you are reasonably talented, a matter of ..."

11
16:45 - 19:46
3:01 duration36 words

Model of Operational Efficiency

Luca outlines how Bending Spoons achieves operational efficiencies through resource allocation and shared talent across its acquisitions.

"The the obvious one is of course you get to say you you can negotiate with a vendor for cloud infrastructure, advertising partner, better. So that adds probably a couple percentage points in eBay dumb..."

12
19:46 - 21:17
1:31 duration32 words

Culture of High Talent Density

Discussion about the importance of attracting and cultivating high levels of talent density within Bending Spoons.

"Another major advantage of our model is that take Evernote. It's a very nice business, nice product, beloved product. Most people would consider the prospect of working at Evernote just average appeal..."

13
21:17 - 22:49
1:32 duration39 words

Building a Lasting Employer Brand

The speaker elaborates on strategies implemented to develop a strong employer brand and attract top talent.

"We think about the jobs we offer as our most important product. So, you need to know who your customer is, what you are offering, how you're uh differentiated and have the courage of really focusing o..."

14
22:49 - 24:20
1:31 duration40 words

The Thrill of Testing Limits

Exploration of the addictive nature of testing oneself and the drive for excellence among team members.

"It's difficult to tell. I suspect though it's a common trait of a lot of people who have achieved greatness in their vertical. I'm thinking for some reason tennis comes to mind and when I look at Nova..."

15
24:20 - 27:22
3:02 duration38 words

Consensus and Leadership Challenges

Insights into the challenges of seeking consensus and the role of constructive friction in achieving business goals.

"One thing I I've learned um that's cost me a lot of uh sanity and uh and caused me some sleepless nights is that consensus is overrated and even dangerous at least when you're trying to achieve someth..."

16
27:22 - 28:54
1:32 duration38 words

Early M&A Experiences

Luca talks about the early experiences and lessons learned in M&A, highlighting the first acquisitions made by Bending Spoons.

"Oh yeah. I mean in the beginning again we had those 40,000 so we were trying to to get you know do some consulting like I said which never worked. I mean basically brought no revenue pretty much..."

17
28:54 - 31:57
3:03 duration52 words

Criteria for Acquisition Targets

The speaker outlines the critical factors considered when evaluating potential acquisition targets for Bending Spoons.

"It's always been the same things on a high level. And that would be number one. So far we've always focused on digital technology. We haven't bought supermarket chains, nor do we plan to. uh because y..."

18
31:57 - 41:05
9:08 duration49 words

The Evernote Acquisition Case Study

A deep dive into the strategic rationale behind the acquisition of Evernote and its transformation post-acquisition.

"I mentioned earlier at the beginning it was all what we could you would call asset deals individual apps and whatnot and um and then we had a period of maybe 3 four years where we saw that that very b..."

19
41:05 - 44:07
3:02 duration44 words

Pricing Strategies in M&A

Discussion on how to approach pricing strategies in acquisitions while maintaining discipline and psychological considerations.

"One is how do you determine your function returns as a function of price paid. Mhm. >> The second one is how do we uh stay disciplined so we will really not pay more than we believe is right based on ..."

20
44:07 - 45:38
1:31 duration74 words

The Art of Saying No

Discussing the importance of not becoming emotionally attached to a business and knowing when to walk away.

"you know, I'm okay if I hear no, but don't think you can get 25% more out of me just just asking. And then you got to be disciplined when they ask for more than you're willing to pay. >> You you absol..."

21
45:38 - 1:00:48
15:10 duration114 words

Navigating Equity Capital

Insights into how equity has been raised mainly for secondary transactions rather than major growth.

"...that helped accelerate before we couldn't use that because you you need uh to be have an established track record because before they take you ser I would do the same if I were them since then it's..."

22
1:00:48 - 1:17:32
16:44 duration66 words

Navigating Classifications of Talent

Insights on evaluating cognitive abilities and the impact on investment success.

"...understanding people and their cognitive abilities is quite difficult. Requires in and of itself great cognitive abilities. I find that >> if someone is eight out of 10 smart, they can only discern..."

23
1:17:32 - 1:23:37
6:05 duration85 words

AI's Impact on Future Business Models

Exploring the potential effects of AI on established business models and new opportunities.

"...you mentioned earlier that ultimately your main product is your company and the people that work here are the key people to attract the jobs or products themselves. What are some of your favorite w..."

24
1:23:37 - 1:24:22
0:45 duration55 words

Reflections on Kindness

A personal story about how the kindness of classmates helped change the speaker's life trajectory.

"...What is the kindest thing that anyone's ever done for you? So when I was a little kid or I was almost pathologically shy to the point that I was uh let's say diagnosed with autism. I think the diag..."