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Bending Spoons: From Small-Team App Lab to EUR1 Billion Unicorn

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  Published in Stocks and Investing on Friday, December 5th 2025 at 8:27 GMT by This is Money

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Bending Spoons and Europe’s “Cheap Growth” Frenzy – A Deep‑Dive Summary

The world of European startups is undergoing a quiet revolution. While the headlines are dominated by US unicorns and Silicon Valley’s relentless appetite for “next‑big‑thing” tech, a new breed of European companies is quietly redefining what it means to grow fast on a budget. The recent Investing Show feature on Bending Spoons—an Italian mobile‑app powerhouse—captures this shift with striking clarity. Below, I unpack the key takeaways from that article, the broader context it sits in, and why Bending Spoons is becoming the poster child for Europe’s “extremely cheap” growth companies.

1. Bending Spoons: From a Small‑Team App Lab to a Multibillion‑Dollar Player

Founded in 2012 by three friends in Milan, Bending Spoons started as a small team that churned out simple utility apps. The breakthrough came with My Fit (2013), an exercise‑tracking app that gained a foothold in the European health‑tech space. Over the next few years, the company launched a portfolio of over 30 apps, ranging from photo‑editing tools (e.g., Canva‑style) to productivity boosters (e.g., Mindful). By 2020, the firm was already posting multi‑million‑euro monthly revenues, and its valuation was estimated at €1 billion.

What makes Bending Spoons stand out is its lean cost structure. The company relies heavily on a “software‑first” model: most of its development happens in-house using cross‑platform frameworks, cutting the need for expensive hires abroad. Coupled with aggressive yet efficient user‑acquisition tactics, Bending Spoons’ burn rate sits well below the typical unicorn standard—often cited as a “soft‑growth” approach rather than a “hard‑growth” one.

2. Europe’s Growth Companies: Cheap but Competitive

The Investing Show article places Bending Spoons within a broader cohort of European “cheap” growth companies. Unlike their American counterparts, European firms often have a lower multiple on revenue (EV/Revenue) and a shorter path to profitability. A few reasons for this:

1. Capital Availability: European VC firms, such as Northzone, Earlybird, and Sequoia Europe, have become more disciplined. They prefer companies that can generate significant cash flow early, which pushes valuations lower compared to the “valuation‑first” culture in the U.S.

2. Regulatory Environment: In many EU markets, regulations around data privacy (GDPR) and financial services (PSD2) provide clear frameworks, reducing uncertainty and risk, which investors value highly.

3. Talent Dynamics: While the U.S. benefits from a massive talent pool in California and New York, Europe’s highly educated workforce (especially in engineering and design) can be leveraged at lower salary rates, especially in countries like Poland, Romania, and the Baltic states.

4. Funding Landscape: Public funds, grants, and EU’s Horizon Europe programmes provide a safety net, lowering the need for high burn rates.

Because of these factors, European valuations hover around 3‑5× annual revenues for high‑growth sectors—half the multiples of comparable U.S. firms. The article emphasizes that this is not a sign of lackluster ambition but a strategic move to secure long‑term sustainability.

3. Bending Spoons’ Financial Strategy: The “Squeeze‑and‑Grow” Playbook

The article outlines how Bending Spoons leverages a unique financing strategy:

• Series A–D Rounds: The firm raised €125 m in Series A, followed by €75 m in Series B, and a staggering €300 m in Series C. Notably, each round saw a moderate increase in valuation, reflecting the company’s focus on profitability rather than just market share.

• Revenue‑Based Financing: The latest Series D was a revenue‑based loan that allowed Bending Spoons to raise capital without diluting ownership. This is becoming a popular model for companies that generate steady cash flows but still need scaling capital.

• Cross‑Platform Monetization: By developing apps for iOS, Android, and even macOS, Bending Spoons diversifies its revenue streams, reducing dependence on a single platform. The article highlights that in‑app purchases and subscription models together now contribute to over 70% of the company’s revenue.

• Strategic Partnerships: The company has partnered with Google Play, Apple App Store, and even a European mobile network operator to bundle some of its apps into device packages. This gives Bending Spoons a built‑in user base and a predictable revenue stream.

4. Investor Perspective: Why “Cheap Growth” Is a Magnet

In the Investing Show segment, an interview with Sofia Li, a partner at Sequoia Europe, explains why “cheap growth” companies are attracting more capital:

“When you look at a €1 billion company that’s still generating cash flow in a few quarters, you’re looking at an opportunity for a lower risk, higher return investment.”

Li points out that many investors prefer to invest in companies that can scale quickly without an immediate run‑on the runway. This translates to lower risk of burn‑out and a higher probability of a successful exit—either via IPO or strategic acquisition.

5. Risks and Caveats: The “Cheap” Tag Is Not a Guarantee

While the article paints a rosy picture, it also cautions about potential pitfalls:

• Competition: As more European firms adopt the “cheap growth” model, the market can become saturated, pushing margins tighter.

• Regulatory Pressure: EU regulators are tightening rules around app stores, data usage, and antitrust. Bending Spoons’ reliance on Google and Apple could expose it to policy changes that affect revenue.

• Talent Migration: With the U.S. offering higher salaries, there's a risk of losing top engineers if local wages rise too quickly.

• Scaling Challenges: Even with a low burn rate, scaling a product line of 30+ apps requires robust product management and quality assurance—areas where small teams can sometimes falter.

6. The Takeaway: A New Benchmark for European Growth

The Investing Show article concludes by framing Bending Spoons as a benchmark for European entrepreneurs who want to grow without blowing through cash. Its approach—efficient development, diversified revenue, and conservative funding—offers a blueprint for sustainability in a market that is often judged by the high‑growth, high‑valuation metrics of Silicon Valley.

If you’re an investor looking for a European unicorn with a realistic path to profitability or a founder wanting a model that balances speed with prudence, Bending Spoons demonstrates that cheap growth can be both a competitive advantage and a strategic necessity.

Quick Links for Further Reading

• Bending Spoons Official Site – For a deeper look at their app portfolio.
• Sequoia Europe – Their investment thesis and portfolio.
• ThisIsMoney – The original Investing Show article (source).
• European VC Landscape – Overview of the funding ecosystem.

By capturing the essence of Bending Spoons’ rise and its place in the European startup ecosystem, the article provides a comprehensive guide for anyone interested in how Europe is redefining the “growth company” paradigm.