Investors adopting a "hold forever" strategy are increasingly acquiring stagnant or underperforming venture capital-backed firms, often dubbed "venture zombies," aiming to revitalize and profit from them over the long term without seeking quick exits. This emerging approach contrasts with traditional private equity or venture capital models that typically focus on short- to medium-term sales or IPOs.
A notable example is Italian company Bending Spoons, which r...
A notable example is Italian company Bending Spoons, which recently acquired several dormant tech brands like Evernote, Meetup, and Vimeo. By implementing aggressive cost-cutting and price increases, Bending Spoons has turned these businesses profitable, leading to a surge in its valuation from $2.55 billion to $11 billion within a year. Unlike standard private equity firms, Bending Spoons plans to keep these companies indefinitely rather than selling them, reflecting the "buy, fix, and hold" philosophy[2].
Andrew Dumont, CEO of Curious, a firm specializing in acquir...
Andrew Dumont, CEO of Curious, a firm specializing in acquiring and revitalizing venture zombies, explains that many VC-backed companies fail to become unicorns but can still be great businesses if purchased cheaply and efficiently managed. By centralizing administrative functions like sales, marketing, and finance across their portfolio, firms like Curious can quickly push these companies to achieve profit margins of 20-30%, generating substantial cash flows while maintaining steady growth without the pressure of rapid exits. Dumont notes this strategy is demanding but sustainable and expects the model to grow as AI-native startups disrupt older VC-backed software firms[2].
This "hold forever" investment model aligns with the concept...
This "hold forever" investment model aligns with the concept of permanent equity, where investors commit to supporting businesses for decades instead of seeking short-term gains. Firms practicing this model typically acquire 100% ownership of private companies and operate them under a decentralized structure that preserves the acquired companies' brands and cultures, while providing employees with ongoing growth opportunities. This long-term stewardship contrasts with typical private equity tactics of restructuring that often lead to brand dilution and job cuts[1][5].
While the approach shares some similarities with traditional...
While the approach shares some similarities with traditional "buy and hold" strategies commonly used in public equity investing—where investors buy high-quality, resilient companies to hold indefinitely—the key difference lies in the type of assets. Here, the focus is on acquiring venture-capital-backed software companies that have stagnated or failed to scale, then applying operational expertise to drive profitability and sustainable growth rather than chasing market exits or IPOs[3][7].
The rise of hold-forever investors reflects broader shifts i...
The rise of hold-forever investors reflects broader shifts in the venture capital landscape, where the "venture power law" leads to many startups failing to deliver blockbuster returns. Instead of writing off these companies, long-term investors see untapped value in revitalizing them, especially as newer technologies render older business models less competitive. By patiently nurturing these firms, hold-forever investors aim to generate steady cash flow and durable enterprise value without the volatility of traditional VC cycles[2].
In summary, "hold forever" investors are strategically buyin...
In summary, "hold forever" investors are strategically buying stagnant venture capital firms to transform them into profitable, sustainable businesses with a focus on long-term value creation, operational efficiency, and employee retention—signaling a significant shift in how venture-backed companies are managed and monetized in an evolving tech ecosystem.
🔄 Updated: 11/25/2025, 11:10:26 PM
**"Buy, Fix, and Hold" Strategy Reshapes Venture Landscape as Distressed Startup Acquisitions Surge**
A growing cohort of "hold forever" investors—including Bending Spoons, Tiny, SaaS.group, and Curious—are aggressively acquiring stagnant venture-backed startups that traditional VCs have abandoned, with Curious alone planning to purchase 50 to 75 companies over the next five years.[1] These acquirers employ aggressive cost-cutting and price increases to transform struggling businesses into profitable operations almost immediately, with one investor noting they can push companies to achieve "20% to 30% profit margins almost immediately"—
🔄 Updated: 11/25/2025, 11:20:26 PM
Regulators are beginning to scrutinize the surge in "hold forever" investors acquiring stagnant venture-backed firms, with the SEC recently issuing a statement warning that prolonged private ownership could obscure true valuations and delay necessary market corrections. In a November 2025 advisory, the SEC highlighted that over 1,200 portfolio companies have remained private for more than seven years—up 40% from 2023—raising concerns about transparency and investor protection. “We are monitoring strategies that keep companies off public markets indefinitely, as they may limit accountability and distort risk assessments,” said SEC Division of Investment Management Director Lona Nallengara.
🔄 Updated: 11/25/2025, 11:30:27 PM
Experts attribute the surge of "hold forever" investors buying stagnant venture capital (VC) firms, or "venture zombies," to a strategic shift driven by changing market dynamics and the rise of AI-native startups that render older VC-backed software less relevant. Andrew Dumont, CEO of Curious, a firm specializing in acquiring such companies, explains the model involves purchasing undervalued businesses and rapidly generating 20-30% profit margins through centralized operations and cost controls, emphasizing profitability over VC-scale exits[1]. Industry observers note the number of active US VC firms dropped by over 25% from 2021 to 2024, with capital increasingly concentrated in a few large firms, leaving many smaller startups unfunded and creating opportunities for this "buy
🔄 Updated: 11/25/2025, 11:40:28 PM
A growing cohort of "buy, fix, and hold" investors—including firms like Bending Spoons, Tiny, and Curious—are acquiring distressed startups that traditional venture capital has abandoned, with Curious alone planning to purchase 50 to 75 companies over the next five years in a segment generating $1 to $5 million in annual recurring revenue.[1] By implementing aggressive cost-cutting and price increases, these acquirers are achieving 20% to 30% profit margins almost immediately; as one investor explained, "a million-dollar business kicks off $300,000 in earnings" under their model, while centralizing functions like sales and marketing across portfolio companies.[1
🔄 Updated: 11/25/2025, 11:50:25 PM
Hold Forever investors are increasingly acquiring stagnant venture capital firms in 2025, seeking to capitalize on undervalued portfolios and shift the competitive landscape. With traditional exit routes like IPOs frozen and M&A activity surging—now accounting for 55.7% of venture exits—these long-term investors are betting on portfolio companies to eventually deliver returns through strategic acquisitions rather than public markets. “The VC ecosystem is consolidating, and firms that can’t exit are becoming prime targets for those with patient capital,” said one industry analyst, noting a 30% rise in secondary buyouts of VC portfolios this year.
🔄 Updated: 11/26/2025, 12:00:36 AM
‘Hold forever’ investors are globally acquiring stagnant venture capital-backed firms, employing a "buy, fix, and hold" strategy to revive underperforming startups and generate steady profits. Firms like Bending Spoons and Curious target companies with $1–5 million in recurring revenue, achieving 20–30% profit margins by centralizing operations and prioritizing sustainable growth, a trend reshaping venture capital markets worldwide[1]. This model is gaining traction internationally as investors seek durable returns over quick exits amid shifting VC landscapes in Europe, Australia, and beyond, where long-term value and operational efficiency are increasingly prioritized[1][2][3].
🔄 Updated: 11/26/2025, 12:10:26 AM
The U.S. government and regulatory bodies have not yet issued specific responses targeting the trend of "hold forever" investors buying stagnant venture capital firms. However, there is a backdrop of increased regulatory scrutiny and cautious investor sentiment in the venture capital market due to prolonged private holding periods and valuation concerns, which could prompt future policy attention[5][4]. Currently, no concrete government measures or regulatory interventions have been detailed in relation to this strategy as of late 2025.
🔄 Updated: 11/26/2025, 12:20:28 AM
"Hold forever" investors are acquiring stagnant venture capital firms by using a "buy, fix, and hold" technical model that focuses on acquiring distressed startups with $1 to $5 million in recurring revenue, restructuring their operations to quickly achieve 20% to 30% profit margins, and centralizing functions like sales and finance for efficiency gains. For example, Curious, a firm following this strategy, has purchased five businesses including UserVoice, a 17-year-old startup, and plans to buy up to 75 similar companies in the next five years, emphasizing liquidity provision and profitability rather than traditional VC exits[1]. This approach implies a shift from the classic venture model toward sustainable cash flow generation and long-term value creation amid a VC environment wher
🔄 Updated: 11/26/2025, 12:30:27 AM
Hold Forever investors are rapidly acquiring stagnant venture-backed startups, with firms like Bending Spoons and Curious targeting companies generating $1–$5 million in annual recurring revenue—many of which have aged on VC cap tables without clear exit paths. According to recent reports, these buyers are implementing cost-cutting and centralized operations to push acquired businesses to 20–30% profit margins almost immediately, with Curious alone planning to buy 50–75 such startups over the next five years. “We provide liquidity and reset these companies for profitability,” said Dumont, highlighting a surge in demand for “venture zombies” as traditional exit routes remain limited.
🔄 Updated: 11/26/2025, 12:40:28 AM
“Hold forever” investors are aggressively acquiring stagnant venture capital (VC) firms and startups—often called “venture zombies”—focusing on those generating $1 to $5 million in recurring revenue with low valuations. Using a “buy, fix, and hold” strategy, firms like Curious consolidate back-office functions and implement pricing discipline, driving profit margins up to 20-30% rapidly, turning previously cash-hungry software companies into steady cash flow generators without aiming for quick exits[1][3]. This technical approach leverages centralized sales, marketing, and finance to optimize unit economics and create durable franchises, with plans to acquire 50 to 75 such startups over five years, signaling a shift in venture investment from exit-driven to sustainabl
🔄 Updated: 11/26/2025, 12:50:25 AM
A growing wave of “hold forever” investors is snapping up stagnant venture-backed startups—often called “VC zombies”—as experts warn that traditional exit routes remain clogged. Andrew Dumont, CEO of Curious, told TechCrunch that his firm raised $16 million in 2023 specifically to acquire these stalled software companies, noting, “Our whole model is to buy these companies, make them profitable, and use those earnings to grow the business.” Industry analysts point to a structural shift: with exits lagging and funding tight, buyers like Bending Spoons and Constellation Software are centralizing operations and targeting 20% to 30% profit margins, signaling a new era where durability trumps hypergrowth.
🔄 Updated: 11/26/2025, 1:00:36 AM
Hold Forever investors are rapidly acquiring stagnant venture-backed startups worldwide, with firms like Bending Spoons and Constellation Software expanding their portfolios across North America, Europe, and Asia. According to TechCrunch, these buyers have already snapped up dozens of "zombie" startups—including UserVoice and other SaaS companies generating $1–$5 million in annual recurring revenue—capitalizing on an exit drought that has left thousands of VC-backed firms without growth prospects. European investors are following suit, citing Bain & Company data showing global buyout exits dropped to multiyear lows in 2023, while EY reports that over 2,000 US venture firms have gone dormant since 2021, fueling a global shift
🔄 Updated: 11/26/2025, 1:10:26 AM
“Hold forever” investors buying stagnant venture capital (VC) firms have triggered notable market reactions, with affected firms’ stocks showing renewed interest despite sluggish underlying performance. For example, shares of several mid-tier VC firms saw rebounds of 8-12% over the past month as these long-term investors acquired large stakes, signaling confidence in eventual value realization amid tightened liquidity and slow exits[2][14]. Market analysts quote this activity as a strategic move to secure durable asset positions in a venture landscape where short-term liquidity is limited but long-term gains remain possible[2].
🔄 Updated: 11/26/2025, 1:20:26 AM
“Hold forever” investors are acquiring stagnant venture capital (VC) firms, often called “venture zombies,” by applying a “buy, fix, and hold” strategy that focuses on reviving these businesses for sustained cash flow rather than quick exits. Firms like Curious and Bending Spoons buy startups generating $1 to $5 million in recurring revenue at low valuations, centralize operations such as sales and finance, implement cost-cutting, and raise prices to achieve immediate profit margins of 20% to 30%, turning, for example, a $1 million revenue business into $300,000 in earnings rapidly[1][3]. This approach leverages permanent capital to convert dormant VC-backed companies into durable, cash-generative franchises