Luca Ferrari, Bending Spoons CEO: The $40K Origin Story, Buying Product-Market Fit & Why Private Equity Can't Compete

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All-In with Chamath, Jason, Sacks & Friedberg 25 min 3 speakers 7 chapters transcribed 1 hour ago
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How did Luca Ferrari restart his AI startup with just $40 K?

Jason Calacanis 0:01
You wanna
David Sacks 0:02
They went from zero to one billion dollars in revenue in just ten years.
Jason Calacanis 0:06
Bending Spoon CEO Luca Ferrari.
Luca Ferrari 0:09
We have never lost a bid before.
Jason Calacanis 0:11
Well
Chamath Palihapitiya 0:11
AOL has a new parent again. Milan-based tech company Bending Spoons announced it will buy ticketing platform event bride. Bending spoons is stirring up the market. They go from fixing one zombie app to reviving 20 of them.
Luca Ferrari 0:24
Half a billion people use our products. We're trying to build a generational company.
Jason Calacanis 0:30
Please welcome Luca Ferrari.
Chamath Palihapitiya 0:39
That's very much.
Jason Calacanis 0:42
Yeah, here he is. Nice
Chamath Palihapitiya 0:44
to
Jason Calacanis 0:44
see
Chamath Palihapitiya 0:44
you. Ciao Luca.
Jason Calacanis 0:47
You
Chamath Palihapitiya 0:47
got fans. All
Jason Calacanis 0:49
right. Uh
Chamath Palihapitiya 0:49
Luca. Don't make fun of Luca Ferrari. I'm not. I'm just he's this is a great Italian entrepreneur, so shut the f up. Absolutely. Absolutely. Luca,
Jason Calacanis 1:01
I I asked you. No, I got somebody yelling like is Super Mario brothers in the
Chamath Palihapitiya 1:04
audience. We could have another presidential moment here at the All In Podcast. So if she picks it if she if she calls you then just run the phone over.
Luca Ferrari 1:12
Okay, just in case.
Chamath Palihapitiya 1:16
There's a lot of us that have actually been tracking you for a while. Um I I originally heard about you because you were in Milano, uh where you know my wife's family is from.

What lessons did Luca learn from the early failure and how did they shape Bending Spoons?

Chamath Palihapitiya 1:25
Uh and you had this incredibly progressive methodical approach to growth. You did this fantastic um podcast with um Uh Patrick O'Shaughnessy, which was great. I encourage all of you to listen to it. And you explained uh the arc of bending spoons. And I'd love for you to explain to folks the first few years and just all the misery and failure, the the nadir of the company, and then the beginning of the ascent.
Luca Ferrari 1:55
Yeah, so the you know, most of the I mean the pain uh there's fo been p plenty of pain uh throughout as for most entrepreneurs I think. But the The the biggest failures were in the previous startup. So with my co-founders we launched uh an AI company in twenty ten, very early, too early clearly. Uh uh crashed and burned. Um three years later, uh we're left with about uh forty thousand dollars in uh capital we'd raised from the VC and um Um we you know clearly there wasn't a lot to salvage other than uh our relationship being stronger uh and uh and and that money that the VC uh pretty much uh uh gifted to us as they you know didn't want to go through the liquidation process too too much uh illegal fees and too many headaches.
Luca Ferrari 2:43
They had seen us work pretty hard uh and so they told us you guys keep it we'll sell our shares to you for one dollar like uh nominal value and you go and get a nice vacation. uh were clearly a little bit sick in the head and so we took the money and enthusiastically turned it into uh seed financing for bending spoons and And we you know we came up with
Chamath Palihapitiya 3:03
forty thousand dollars.
Luca Ferrari 3:04
4000 exactly in uh 2013 and we we had this strategy which has remained pretty much the same. Obviously, you get smarter, you refine it in time. Uh that was the idea was we we are not very good at finding product market fit, or maybe you know, lock plays a big role, probably both uh things are true. Uh but we have become pretty good at engineering, uh design, monetization, marketing in just three years of hard work, and so we should be And we should be able to buy product market fit from people and uh and and uh and you know they get a good price, we we got a good asset we can make more valuable and then uh we we deploy more capital into making our our platform or a company.
Chamath Palihapitiya 3:45
How much did you pay and how did you get the deal done?
Luca Ferrari 3:48
So the first acquisition uh was uh we paid ten thousand dollars, give or take, and it was a Um a mobile app for iPhones specifically that you used to personalize your your keyboard. Very simple. One uh one uh uh man uh kind of developer uh sold it to us, uh obviously a very amateurish operation, not that difficult at the time to to make it better and more successful. Uh but you know what were you buying? Like you were buying one times revenue, you were buying the revenue, you were buying the app like that. That one specifically I think had uh negligible revenue. It wasn't even really monetized.
David Sacks 4:25
Okay.
Luca Ferrari 4:25
Uh which of course is never the case for for scaled businesses.

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