Why ‘hold forever’ investors are snapping up venture capital ‘zombies’

A growing number of investors are acquiring stagnating VC-backed software companies at low valuations and turning them profitable through cost-cutting and price increases, with no plans to resell. Companies like Bending Spoons and Curious employ this 'buy, fix, and hold forever' model, targeting businesses that generate $1-5 million in annual recurring revenue. These 'venture zombies' typically sell for around 1x yearly revenue compared to healthy SaaS startups at 4x or more, and can achieve 20-30% profit margins quickly by centralizing operations across portfolio companies.