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

Andrew Gazdecki
114 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

Mike Hinckley
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?
Andrew Gazdecki
@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.
Stephen
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?
Andrew Gazdecki
@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.
Matthew McQuinn
@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.
Cam Langsford
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.
Adrian CB
Hey Andrew. What was your customer acquisition strategy with Bizness Apps?
Andrew Gazdecki
@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...
Adrian CB
What do acquired businesses on MicroAcquire all have in common?
Andrew Gazdecki
@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:
Abhash Kumar
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?
Andrew Gazdecki
@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.
Chuck Brandt
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?
Andrew Gazdecki
@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.
n0c0de
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.
Andrew Gazdecki
@n0c0de1 I have a perfect video called "Startups Worth Acquiring". Mainly I like to see happy customers, clean code, and low churn. See here:
Andy Beard
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?
Andrew Gazdecki
@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:
Mayank Mishra
Hey what kind of projects end up being acquired, what happens to these projects after acquisition?
Andrew Gazdecki
@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...
Tadej Krevh
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.
Andrew Gazdecki
@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.
Tadej Krevh
@andrewgazdecki I think it's a great service and wish you all the best!
Alexey Shashkov
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?
Andrew Gazdecki
@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. :)
Kirill So
Always a big fan Andrew - how can other people be "helpful" and support your mission? Also can others invest in the future?
Andrew Gazdecki
@kirill_sofronov Thanks Kirill! 1. Referring startups is always appreciated! 2. Possibly in the future
Aditya Sriganesh
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?
Andrew Gazdecki
@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...
Ken Savage
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.
ABIR HS
Hey, Andrew. Loved your success startup story. Would you sell microacquire to anyone if you have a good deal on the table?
Andrew Gazdecki
@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.
Abderisak
@abirxhossain @andrewgazdecki That's a shame : ) otherwise you'd be able to use MicroAcquire to sell MicroAcquire.
Richard Brist
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?
Andrew Gazdecki
@richardbrist Practice, practice, practice. you'll never be perfect but just like sports, the more you practice the better you play on the field.
Richard Brist
Top 5 books on start-up & entrepreneurship? Really liked your book recommendation From Impossible To Inevitable! Great read!
Andrew Gazdecki
@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
Abderisak
@richardbrist @andrewgazdecki Which one of the books would you say contained the most practical/tangible advice (as opposed to books that focus on mindset)?