MicroAcquire raises additional $3.5m ($6.3m total)

Foreign how's it going? My name is Andrew Gazdecki, I am the CEO and founder of Microacquire. And in this quick video I just want to go over just the progress we've been making on Microacquire and really go over the traction for June and just answer any questions that you might have. And if you do have additional questions, just let me know. But I'm going to be going over the traction deck, going to be going over really our plans for consolidating this really fragmented market. And our goal is to create essentially the Zillow of M and A where we can help with due diligence, escrow valuations, allowing startups to hire M and A advisors, find proper legal counsel and really bring trust and transparency to this market and build the most founder friendly startup acquisition marketplace in the world. And to kick things off, I'll go over the traction deck for June. So we just passed 600,000 annual recurring revenue and this is mainly, this is entirely off premium buyer subscriptions, which essentially allows buyers to have access to deals so they can contact sellers. Obviously this isn't how we're going to build a really, really large business, but this has been a great way for us to really filter out serious buyers from buyers that may be just looking around. And then also we've been reinvesting all this revenue back into the business in terms of startups on Microquart today. So of all the startups combined in terms of revenue we have over 318 million in combined revenue and we added 56 million in new total combined revenue for June. So we're starting to see size of startups increase and obviously a lot of revenue from startups, real revenue generating startups rather than pre revenue or startups that just really aren't of value. So company size increasing from 2020 to 2021 year to date 33%. And this is a huge goal of ours is obviously we want to move up market. We want to start supporting startups that are doing 2, 5, 10, 20 million in annual recurring revenue. And to do that we're going to need to layer on third party services that are almost acquired when you go and sell a company of that size. And so I'll go over how we plan to address that average listing by ARR monthly. So we've had some huge spikes. Usually there's outliers here and in this month here we June was a pretty good month and we're looking pretty consistent in terms of the amount of startups that are being listed on Microacquire listings are going up. That's a good sign. New listings by yearly revenue segment. So we break this down into 100k to 1 million in annual current revenue. That comprises of about 94 million in revenue, less than 100,000 in recruiting revenue. This would be considered like micro SaaS. So these are great for strategic companies or even just entrepreneurs looking to buy a working product and focus on sales and marketing. Or if you're a strategic company to plug a product gap or potentially even aqua hire a team. And then 1 million in your recurring revenue more is at 210 million, which is nice to see. Registered buyers have quadrupled this year. So we've seen a nice increase, which is really just probably just sentiment in the market. We're really benefiting from a lot of tailwinds in terms of acquisitions, private equity activity, and we can expect that to continue to grow. So what I'm going to go over now is just some other interesting things that you might find relevant if you're interested in potentially investing in microacquire. So this is the marketplace, so you can search for SaaS, companies doing, say, you know, between 500,000 to 5 million in revenue. And we'll show all of those companies for you. And you can, you can favorite them, you can hide them, you can even add E commerce to this list, marketplaces, whatever it may be. Or if you want to go really specific, let's clear all the filters. Maybe I'm just looking for like, I don't know, crypto. So I can get a lot of different companies based on really anything, even competitors, such as maybe, maybe it was a mailchimp competitor somewhere. So this would be a mailchimp competitor. And we're also starting to introduce some really interesting things that we're going to be announcing soon, such as financing. So when I click over to this, this goes over to a partnership that we're going to be announcing next week with capchase, where they're going to be helping us finance acquisitions on companies over about a million in annual recurring revenue. So really excited about that. Other things we're working on is just really streamlining acquisitions within a single marketplace. So right now, when a buyer and seller come to terms, they essentially agree on terms and they kind of go in like a back alley and do everything. So we're going to bring everything onto Microacquire so you never have to leave the platform to acquire a company from start to finish. And right now we're starting with just a simple letter of intent. And so as A founder, I can receive a letter of intent from a buyer, I can confirm that. And once confirmed, this is already live. These are just figma files that I'm going through. I can cancel this if something goes wrong during due diligence. And then when I'm ready to say the startup has been sold, I'll be able to do that. Win, win, win. And then really how we're looking to aggregate this market is we want to work with M and A advisors, business brokers, other individuals in the market that are already actively helping startups sell and we want to bring them all into one marketplace to help founders have all the tools they need. And I think my personal story probably relates to this the best. Where when I sold business apps, which is a SaaS company, it was a no code, do it yourself mobile app builder. I got light advice from an investment bank friend, banker friend that, you know, he just would give me like, like that's normal due diligence. That's a question you should probably, you know, push back against or just go to sleep, you know, the emotional process. So as we move up market and we're working with these larger SaaS companies and E commerce companies, we're going to want to have these resources available. So as a founder, I'm going to be able to go in and hire an advisor for just M and A help, accounting, valuation, due diligence, legal negotiations. And the way this is going to work is you're going to be able to review the profiles. We've already onboarded quite a few and we've done it in a pretty MVP fashion and the feedback has been absolutely fantastic. So there's definitely a need from founders here. So moving back to this, you essentially start a chat and then once you have an agreement in place, you accept that advisory agreement. And now John Black is now representing the startup and then as a buyer, I can see it's under advisory. And one piece of feedback I've heard from buyers is that a lot prefer to deal with startups looking to sell when there's a professional involved. Just to keep emotion, emotions down to a minimum, really ensure that the startup has everything in order to facilitate an acquisition. Especially as we get over, you know, the 10 million mark or the 20 million mark. So pretty cool stuff. We're rocking and rolling other things to add, which I think is pretty cool, is the advisor will have the ability to edit a startup's profile. So if they want to update the P and L or they want to go in and manage the buyer request for negotiations or manage the LOI request. They'll be able to do that. So now you're probably working, wondering, okay, how are we going to, you know, build this into a huge company? What is the business model? So if you've gone this far, I have a P and L available and the way this works is pretty simple. So we have a few growth levers that we can pull pull on. And one is just basically increasing the amount of listings within Microaguire. So I'm going to increase all these to 10% and over 10 million. I'm going to increase it 30% and then I'm going to scroll down to M and a broker referral. So essentially the levers that we have to pull here is we have startups electing to hire an M and a advisor or a business broker to help them with the deal. So if I play with these percentages and I increase these to 30, maybe let's just say it's 70% because if it's going to be a life changing acquisition, it probably makes sense to have an M and A advisor involved and then the percentage that the business broker or the MA advisor is going to charge and then we're going to take a commission on their commission. So we're really looking to aggregate the market and give business brokers and M and A advisors a way to find additional startups to represent because half of their time is typically spent on sales and marketing and finding new business to work with. And so we're essentially building like an upwork style directory where we'll drive them business, they'll help close those acquisitions and then we'll take a commission on whatever commission or fee that they charge for their customers. And then to drive this out a little bit further too, when we think about M and A advisors and brokers being on microacquire, there's an opportunity for us to allow these individuals to list their startups on micro acquire. So this could be a great way to increase deal flow as well since they're probably already representing a number of different companies. And so again we can just kind of play with these numbers. We're taking 25% and so this is really how we go from making five figures to substantially more if this all works out. So that's kind of the plan is we want to aggregate the market. We want to be the place where an entrepreneur can come and really find all the resources they need instead of just I want to sell my company. Does anyone have a reference to an M and A advisor? They get it from an angel investor. What legal firm do I do? I use reference. And that is what I went through and it. And it worked out. But it'd be like amazing if you were able to go through a directory of M and A advisors with all of their acquisitions that they've done, all of their reviews and ratings being shown by other entrepreneurs. What do they like to work with? What do they specialize in? What deal sizes? So that's kind of how we're thinking about this business. We believe this is a really, really big opportunity that no one has really thought about and really no innovation has really been brought to the market. So we're looking to make it as easy as possible to buy and sell these software companies as possible. And over time, there's a huge opportunity to move into just general small businesses. So we're starting with tech. But as we continue to grow, there could be opportunities for us to move into Main street businesses as well with, you know, everything involved with, you know, data rooms, escrow, valuations, having, you know, all of the M and A buyers, buyers and brokers in one single network. So if you're interested in learning more, happy to take a call with. Absolutely. If you're seeing this video means I'd love to have you involved in micro choir, and if not, appreciate all your support and definitely feel free to reach out with any questions. Cheers.