🔥 AMA 🔥 - Andrew from MicroAcquire! Startup acquisition marketplace!

Andrew Gazdecki
111 replies
Hi everyone, Andrew here from MicroAcquire! Startup acquisition marketplace! MicroAcquire helps startups find buyers. Simple as that. We’ll help you start conversations that lead to an acquisition in just 30 days – for free. When my company Bizness Apps was acquired in 2018 by a PE firm, it was a bittersweet moment. On the one hand, I’d successfully bootstrapped my company to $10m/ARR+ and a life-changing acquisition. On the other, I’d sold something that took years of blood, sweat, and tears to build. Do I have any regrets? Far from it. I'm here to answer questions about building your own business, bootstrapping startups, marketing, branding, sales, hiring, startup ideas, acquisitions, and anything else related to startups. Twitter: https://twitter.com/agazdecki MicroAcquire: https://microacquire.com/ Bizness Apps: https://www.sandiegouniontribune... AMA!

Replies

Hey Andrew, thanks for this! In relation to your first startup exit: how many attempts at creating a product/business did it take (& how long trying) before you finally started on Bizness Apps?
Share
CEO of MicroAcquire
@stevediaconou probably 10+. I used to start a business every summer in high school and college. Started with an eBay store, web design company, job board, then Bizness Apps. I learned from each venture, how paid ads work, how to set up a website, how to talk to customers. how to find good programmers, how to market, and most importantly how to hustle etc. You learn the most by doing and being able to teach yourself anything.
Share
Co-Founder at Coldlytics
@stevediaconou @andrewgazdecki This answer is so validating. I've explored about half a dozen brands/services and learned so much along the way and it felt like I was always one step forward two steps back until this past year when all that changed with our new venture.
Share
Hi Andrew! just listened to your episode on startups for the rest of us. Was great to hear about your experience with your acquisition and how you used that experience to create MicroAcquire.
Share
CEO of MicroAcquire
@cam_langsford Thanks Cam, really appreciate the kind words.
Share
Hey Everyone, I am Hussain.
@cam_langsford Where can I listen to the episode??
Hey Andrew. What was your customer acquisition strategy with Bizness Apps?
Share
CEO of MicroAcquire
@adriancb We mainly acquired customers through a white label reseller network. Essentially we focused on the software, then would remove our branding, and then partner with web agencies to allow them to use our no-code platform to build mobile apps for the SMB clients. At our peak we had over 5,000 partners all across the globe and created more apps than any other company in the world: https://techcrunch.com/2015/12/2...
Share
@andrewgazdecki - appreciate the insight and time.
What do acquired businesses on MicroAcquire all have in common?
Share
CEO of MicroAcquire
@adriancb Broad question but most obvious answer is the founder set a proper valuation, negotiated properly with buyers, was response with questions, and was motivated the sell the business. See here for an acquisition course I put together:
Share
VP-Marketing at Springworks
Do side projects with traction, but no revenue (as of yet) make sense to be listed on MicroAcquire? Have 0 revenue tools been sold before?
Share
CEO of MicroAcquire
@abhash_kumar2 We used to list side projects without revenue but not as much anymore. The product has to be really good. I'd recommend trying to find even just a few paying customers before looking to sell your startup as your exit price will be much more meaningful, and much easier to find a buyer.
Share
Founder & CEO, stealth-mode startup
Hello Andrew! What sort of "angst" did you experience during the valuation process, the ups and downs; and, what were your decision parameters when you finally did arrive at an "agreeable" figure?
Share
CEO of MicroAcquire
@chuckbrandt1991 Great question. To be candid, I wasn't looking to raise capital and the thought of giving up some ownership gave me seconds thoughts but it was all worth it. Since I already have a "win" under my belt I'm able to take bigger risks. As for arriving at valuation, that all comes down to negotiation and how interested other investors are. The more the better.
Share
Indie hacker using nocode tools
Hey Andrew! Heard so much about MicroAcquire. Could you share your experience / suggestions of stages the startup/product should be in to sell? I've heard about very new to established products getting sold. However, can't quite figure out what to keep in mind on the reasonably ok time to list the product on MA.
Share
CEO of MicroAcquire
@n0c0de1 I have a perfect video called "Startups Worth Acquiring". Mainly I like to see happy customers, clean code, and low churn. See here:
Based upon the tweets I see, are some founders selling through Microaquire are a little unrealistic about their profit margins. Sometimes I see the only cost being $10-$20 for hosting, when I know that there would be extensive maintenance costs. I am sure this gets ironed out later in your process, or in due diligence, but wouldn't it be better to be more realistic to start?
Share
CEO of MicroAcquire
@andybeard Yeah most deals get negotiated down quite a bit. Tons of sellers also list high to keep buyers that aren't serious away (I advice not to do this) but it does only bring it people who really love the product rather than the valuation. Also, valuations are hard on the smaller end, see here:
Share
Co-founder Poppins.me Nocoder & UX
Hey what kind of projects end up being acquired, what happens to these projects after acquisition?
Share
CEO of MicroAcquire
@mishra_mayank All types of startups ranging from SaaS, eCommerce, marketplaces, communities, newsletters, crypto projects, DTC, mobile apps, Shopify apps, Slack apps, everything. It's a fun company to run. As for what happens post acquisition? That's up to the new buyer but I recommend growing the company. Here's some tips on that here: https://resources.microacquire.c...
Share
Co-founder Poppins.me Nocoder & UX
@andrewgazdecki thanks, super helpful Andrew and congrats on the fundraise!! wohoo..
Share
CEO of MicroAcquire
@mishra_mayank Thanks dude appreciate your support!
Share
Recently, on Startups for the Rest of Us podcast, you started to mention that you started MicroAcquire and did a bunch of other things while having your first kid. Can you say more about how you managed this, and if there are any learnings you can share?
Share
CEO of MicroAcquire
@mahinckley I used to start a business every summer in high school and college. Started with an eBay store, web design company, job board, then Bizness Apps. I learned from each venture, how paid ads work, how to set up a website, how to talk to customers. how to find good engineers, how to market, how to sell, and most importantly how to hustle etc. You learn the most by doing and being able to teach yourself anything.
CTO / Principal Full Stack Engineer
Hi Andrew! I'm wondering how you approached tackling the biggest marketplace app issue - growing both sides of the marketplace - sellers and buyers. Because when you don't have sellers, you don't have buyers, and vice versa. I've built a social gig/job platformin 2016 and we failed, because it was so hard to grow it.
Share
CEO of MicroAcquire
@tadej_krevh Ah yes it wasn't easy. So I had "launch date". I found a group of serious buyers (mostly private equity) that loved the idea, then I pitched startups letter them know there were real buyers on MicroAcquire. Once both were onboarded I launched on ProductHunt same day: https://www.producthunt.com/post... Then that just began the fly wheel effect of startups & buyers coming to me but for a while, I'd see maybe 1 new startup posted per week. Now it's 100+. Startup take a lot of conviction and patience, this is where I see most failing by simply giving up. I stuck with it because I truly felt MicroAcquire needed to exist and enjoyed working on it, which is also important, find something you'd run for free.
Share
CTO / Principal Full Stack Engineer
@andrewgazdecki I think it's a great service and wish you all the best!
Share
CEO of MicroAcquire
@tadej_krevh Thanks Tadej and happy to help!
Share
Founder at LtdHunt.com
Inspired product maker
Hey Andrew, thank you for this discussion and opportunity to talk to you. Much appreciated! Can you share your thoughts about how to find an idea for a startup? How did you find your ideas? How to make something people want? How to build a product people love? How to bootstrap a SaaS to $10M ARR? How to build a successful business that can be sold on MicroAquire? Can you give a piece of advice about it?
Share
CEO of MicroAcquire
@shashcoffe Good questions... 1. Talk to customers. 2. Talk to customers. 3. Talk to customers. 4. You need to know your numbers, ideally customer acquisition payback period. How fast can you reinvest revenue from customers back into growth? Also need a team, can't do it alone. 5. Simple. Just focus on building a business with happy customers. The rest sorta takes care of itself but the key is to having a business with happy paying customers. :)
Share
Inspired product maker
@andrewgazdecki Thank you, man. Much appreciated! You're absolutely killing it! 💪🙌🙂
Share
PM
Always a big fan Andrew - how can other people be "helpful" and support your mission? Also can others invest in the future?
Share
CEO of MicroAcquire
@kirill_sofronov Thanks Kirill! 1. Referring startups is always appreciated! 2. Possibly in the future
Share
Slack Apps for Fun and Productivity 🧀
Hey @andrewgazdecki, what's the average revenue multiple (of valuation) you're seeing in early stage < 1 M ARR SaaS startups and mid-stage 1 - 10 M ARR SaaS startups? 20x?
Share
CEO of MicroAcquire
@adityasriganesh Great question, depends on the company as there as so many factors such as revenue, growth, churn, code quality, happiness of customers, industry, the list is endless but here's a good article on SaaS valuations check out: https://resources.microacquire.c...
Share
CEO of MicroAcquire
Hi
very informative!
Share
CEO of MicroAcquire
@victorwatsonvictor Thanks VIctor! :)
The Product Launch Pro
Yoo @andrewgazdecki In your opinion can an agency sell the service they provide to other agencies? The brand is shit but the service they provide is extremely unique and has lots of clients.
Share
CEO of MicroAcquire
@kensavage Really depends, I'd give it a shot. Best way to find out.
Share
Co-founder, SOHO | Creator Economy 🏆
Hey, Andrew. Loved your success startup story. Would you sell microacquire to anyone if you have a good deal on the table?
Share
CEO of MicroAcquire
@abirxhossain Thanks so much! At the moment, no there's just too many startups I want to help successfully get acquired. The additional money wouldn't really change my life and I like having a purpose & helping entrepreneurs succeed.
Share
Co-Founder of Avidnote. PhD researcher.
@abirxhossain @andrewgazdecki That's a shame : ) otherwise you'd be able to use MicroAcquire to sell MicroAcquire.
Building
Hi Andrew, I love what you are doing with MicroAcquire! Question. How do you get confidence talking to potential customers whom have strong industry experiences (as an introvert myself)? Tips, recommended books, routine?
Share
CEO of MicroAcquire
@richardbrist Practice, practice, practice. you'll never be perfect but just like sports, the more you practice the better you play on the field.
Building
Top 5 books on start-up & entrepreneurship? Really liked your book recommendation From Impossible To Inevitable! Great read!
Share
CEO of MicroAcquire
@richardbrist Here's a few... “The Startup Owner’s Manual” by Steve Blank “Who” by Geoff Smart and Randy Street “Zero to One” by Peter Thiel “Leading at the Speed of Growth” by Katherine Catlin and Jana Matthews “Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity” by Kim Scott “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers” by Ben Horowitz “The Lean Startup” by Eric Ries “Start Something That Matters” by Blake Mycoskie
Share
Co-Founder of Avidnote. PhD researcher.
@richardbrist @andrewgazdecki Which one of the books would you say contained the most practical/tangible advice (as opposed to books that focus on mindset)?