We are closing in our first acquisition on a Micro-SaaS company and wanted to update you all on our progress so far. Please like and share!
We have inspirational plans for Meera Capital. Our current goal for MC Ventures is to have a portfolio of Micro-SaaS companies. Contrary to widespread belief, we have decided to forgo a thesis for the time being, opting instead to build from the individual company up (real-world) vs. a thesis down (life in a vacuum). We by no means intend to underplay the power of a good thesis but we recognize the Micro-SaaS/business industry is incredibly young, dynamic, and broad. We believe the best performing Micro-SaaS companies target niche markets and are only pain killers (no room for vitamins).
These are the guiding principles that we are using during this acquisition process
Recurring revenue
Founder who is a builder not a salesman
Pain killers
Niche markets
Serve SMBs
SaaS
Platform Agnostic
Recurring revenue – We want revenue coming in the door every month and believe we can get a premium valuation for it later. Investors, financiers, etc. love to see recurring revenue and it gives us more flexibility.
Builders – We are not technical founders and believe our greatest value add comes on the business/sales side of things. We are looking for well-built products and a founder with no desire to be on the phone all day.
Pain Killers – We are looking for companies that provide recurring solutions to acute pain points and instantly prove their value to our customers.
Niche Markets – Many “non-niche” markets are already served by large venture backed SaaS companies.
Serve SMBs – There is a massive amount (and growing) number of SMBs, and we feel like Micro-SaaS companies are best targeted at the long tail. Additionally, we believe SMBs are more likely to spend on pain killers.
SaaS – We believe SaaS is the superior business model and since we plan to operate a portfolio of companies, we like the agility that software offers.
Platform Agnostic - We are interested in companies rather than applications. We do not want our future revenue to be reliant on the state of another company’s performance or terms of service.
The pandemic has had many strange effects on the world and economy, one of particular interest to us is the growth of SMBs & micro-businesses. In 2020 alone over 4.35 million new businesses were registered in the United States.
As a result, during the scouting process we see a lot of companies, business models, characteristics, and industries we are not interested in. Currently they are,
Bulky/demanding industries like content creation & E-Commerce
Saturated industries like CRMs, productivity, and invoicing tools
Highly regulated industries like healthcare & financial services
Vitamins
Large teams
No sales
We want to know what you think! Let us know in the comments below. What are you looking for in a micro acquisition? What is your thesis, or do you think they are overblown?
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