Lee McCabe Highlights Bending Spoons’ Private Equity Playbook for Revitalizing Tech Brands

In a recent LinkedIn post, Lee McCabe offers a compelling analysis of Bending Spoons, a private equity firm he describes as “the most private equity company in tech.” McCabe contrasts Bending Spoons’ approach with the conventional expectations of the tech industry, particularly its preference for operators who embody certain cultural norms and buzzwords. Instead, he highlights how Bending Spoons strategically acquires and revitalizes established, yet seemingly overlooked, tech companies.

“Bending Spoons buys the stuff everyone thinks has had its day.”

The Strategy Behind Acquiring ‘Tired Products’

McCabe identifies a pattern in Bending Spoons’ acquisitions, listing prominent brands such as Evernote, WeTransfer, Vimeo, Eventbrite, AOL, and Meetup. He characterizes these as “old brands. Real users. Tired products. Pricing that probably needed adult supervision years ago.” This approach, according to McCabe, is akin to acquiring a solid industrial business with operational challenges that others might shy away from.

The core of Bending Spoons’ strategy, as outlined by McCabe, involves rigorous operational improvements. He details the process: “Costs come out. Products get cleaned up. Subscriptions get pushed harder. Pricing gets less apologetic. Data starts mattering. Nostalgia gets escorted out of the building.” This systematic overhaul aims to transform underperforming assets into profitable ventures.

Bending Spoons’ Financial Success and the Private Equity Model

McCabe points to Bending Spoons’ recent IPO filing as evidence of its significant value creation. Citing Reuters, he notes the company is targeting a valuation of at least $20 billion, with substantial revenue growth from $259 million to $601 million year-over-year in Q1 2026, and a shift from a net loss to a net income of $27.5 million. Fortune reported even more impressive figures for 2025, with revenue reaching $1.31 billion, a 95% increase, and operating profit at $278 million.

According to McCabe, this financial performance “sounds suspiciously like value creation.” He contrasts this effective operational strategy with what he perceives as a more convoluted approach taken by many other private equity firms. He criticizes the common reliance on jargon-filled “100 day plans” that lack tangible impact on core business metrics like EBITDA.

“Buy a decent asset. Find the obvious leakage. Fix the plumbing. Make the numbers visible. Stop undercharging. Remove the sacred cows. Put people in charge who actually operate, rather than admire the problem from a very expensive conference room.”

Critique of Conventional Private Equity Practices

McCabe argues that many private equity firms complicate value creation unnecessarily. He states:

“Instead, too many firms still produce a 100 day plan that looks like it was assembled by seven consultants in a Marriott using words nobody says out loud at home.

‘Commercial excellence.’

‘Transformation office.’

‘Strategic growth acceleration.’

Lovely. EBITDA remains unmoved.”

In contrast, McCabe posits that Bending Spoons offers a clear, sharp-edged playbook. He concludes that “old assets are rarely dead. They are usually just neglected, mispriced, overstaffed, undermeasured, or run by people who confuse heritage with permission to drift.” While acknowledging the real-world consequences such as layoffs and user complaints, McCabe emphasizes the underlying operating philosophy.

“Buy things people still use. Make them better. Charge properly. Cut the nonsense. Compound.”

Ultimately, McCabe suggests that Bending Spoons’ success serves as a potent reminder for the private equity industry, demonstrating that effective operational management and a no-nonsense approach can unlock significant value in established technology businesses. He implies that other firms might benefit from adopting a more direct, operator-focused strategy.