September Investor Update - MicroAcquire

All right, welcome to the September Microquire update. Super excited for this one. This is my first one without a hat, so I hope you recognize me. I'm Andrew, CEO of Microacquire. And before I go through this, just thanks for everyone's support. It's just been awesome building this company and we're having a blast. So without further ado, this is the update that we got. I'm gonna try to keep this under 10 minutes if I can. So quick highlights, the main ones I'd like to point out. 30 acquisitions closed in the month of September. Total deal volume was over 17 million. Average acquisition size was about 576,000. We're currently at 953,000 in recurring revenue, and that's only from premium buyers. So if we were taking commissions off of the deals that are closing on Microquire, like if you just do 10% of 17 million, that's 1.7 million revenue. So we'll be getting there soon. But you can kind of just read through these, what else we got. So for those of you that aren't familiar with what we're trying to do at Microware is we're building a market network. And so what that means is we're providing as many third party services as we can to make it as easy as possible for founders to sell their startup and get acquired. So from legal to financing to M and A advisors, also looking at things that like escrow data rooms, we got a lot of really cool stuff planned, so stay tuned for that. Our annual run rate, we're currently at 953,000. Really excited to hit that, that million mark in terms of combined revenue of all startups listed, it is exploding. So right about 800 million in total revenue of all the startups Combined, we added 181 million in new total revenue in September. So deal flow is just like a fire hose. And we're also very picky with what we list. So this was a nice number to see increase. And we're also really starting to think like a media company. I always say there's thousands of bootstrap startups building really profitable companies. Most of the major media today focuses on venture backed companies. So instead of just complaining about it, we did something about it and so we started a real publication. Definitely check it out. It's just really great. Inspiring and encouraging company building stories by entrepreneurs taking an alternative path to building a multi million dollar company. So shout out to my team for that. We also have this really badass valuation tool that's gonna be coming out and we're taking our time with this just because there's a number of valuation tools out there. We want this one to be like the best in the market. And so this is gonna help you understand what your startup is worth based off of data that we see within our marketplace. And so think of it as like a dashboard that shows you SAS analytics, and at the top you'll see your valuation. And then if you want, you can just click and then we'll port you over to microguire for a listing. So it's going to be slick timeline for launch. I. I'd say probably end of October, but again, we're trying to release this as like a finished, polished product. So stay tuned there. The M and A Marketplace is ready to go and I can actually demo that right now too. So basically the idea behind this is think of Yelp or Upwork for M and A advisors, brokers, attorneys, investment bankers. We're going to have reviews, testimonials, really bringing trust and transparency to this fragmented market. And that's kind of like a quick demo of how that would work. So this is on staging, but as you build your startup profile as a founder and you're looking to sell, and let's say you have no idea how to negotiate with buyers, you need help with due diligence or legal or accounting or escrow. We're going to add more services here, but this is just to start. And these are obviously all fake. If I. Snoop Dogg is not doing any M and A on microguire. But you'll be able to reach out to them. There's a whole workflow in terms of hiring them and giving them access to your startup and allowing them to basically edit your listing. They can add new files, they can go through your requests and respond and deny them. So that'll be pretty awesome. And we're super excited about that. So that's coming out within the next week or two. We're just. It's completely done. We're just onboarding advisors and so far we've onboarded. I wrote it on Twitter. Let's see, 22 M&A advisors, 19 due diligence advisors, 20 negotiation advisors, 13. And negotiation kind of falls into like M and a advisory, 13 valuation advisors, four accounting advisors, seven escrow advisors, three legal advisors. So if you're interested in joining the marketplace, we're essentially sending you free leads to help startups get acquired. So definitely check that out. What else we got? So, going back to the presentation, we secured some pretty awesome partnerships specifically with Pipe and Clearco. So Pipe has the exclusive rights to finance all SaaS, acquisitions and any businesses with recurring revenue. And then Clear Co is helping us finance all of our e commerce companies. So if you need financing as a seller or a buyer, you can get pre approved. So as you onboard onto Microacquire, you can reach out to Clearco or Pipe to get pre approved so buyers can see that this startup has a pre approval financing limit. And then as a buyer you can also get pre approved as well. And we'll have like a little tag so when you reach out to a founder, it'll say hey, been pre approved for you know, 500,000 to make an acquisition to really show founders that you have the funds to successfully close the acquisition. Some other cool stuff. We threw this event at my house. It was amazing. This, the story behind this is kind of funny. So Saster was in town and I live five minutes away and I just said hey, anybody want to come over? And within a week we put together an event that had about 100 people. And this was a great, just one of those moments where you step back and you just say, hey, like we're having an impact. At Microquire, I met people who had sold businesses for millions of dollars. One individual told me he was working on acquisition for 20 million in the works, which would be a new record. And just tons of founders just really chasing their dreams and doing it on their own terms, which inspires me and had a ton of fun. So that was awesome. And this is where I feel like we're really creating a movement and we're really talking about a different style of entrepreneurship, a more realistic version of entrepreneurship, specifically with bootstrapping and not raising a bunch of venture capital because selling a company for 10 million bucks is pretty damn cool. What else we got? So this is my creative designer. So some new additions, some new baddies joining the micro mafia. We have Paul, he's leading our VP or our M and A marketplace. So he's been the one onboarding everybody. He was previously a business broker and manage his own firm. He had I, I believe 20 or 30 business brokers working underneath him, helping him close a few hundred acquisitions. And then we have Brendan, principal software engineer, Peter James, Eva, Sasha, and then we also have a slide for the full team. I told Rocky, so Rocky's our creative designer, so she makes everything look amazing. She calls me Gucci Gas. So I, I decided not to make any edits on this. But we got me my coo Brian who worked with me at business apps the company that was I started when I was 21, it was acquired when I was 29. Paul that I just went over. Stephen was also VP of Product at Business Apps. Dave or David was VP of Engineering at Business Apps. Kevin was my VP of Marketing at Business Apps and he has like a agency that's just booming. So right now he's working as a marketing consultant. We also hired an in house M and a startup attorney. Rocky is our creative director. She makes everything look she like. She always likes to say that we want to look expensive. So she definitely does a great job with the design. So all credit to design goes to her. Huge shout out to Chris. He's the one that's been leading the Bootstrappers initiative. He set up a whole publication in 30 days, which is incredible. And then we hired three in house journalists that interview writers, really try to tell their story in a positive way and really bring light to these entrepreneurs that typically just aren't getting any media coverage. And that's kind of the state of tech media today, which is totally fine. But it's a huge opportunity to tell stories that inspire and encourage and maybe make entrepreneurs think, is there another path to growing a company aside from raising a bunch of venture capital and going down that path? Expanded support and then Brennan was a referral from Dave. So what I like about this whole team is we, God, we have so much fun together. Everyone's awesome. I worked with Kim at Business Apps. Dave worked with Brendan at another company. James did all of our financing. Rocky worked at Business Apps. I've been working with Chris for like three years. So I'm building a team just of people that I enjoy working with. I think a lesson here for founders is if you're not having fun, what's the point? So big emphasis on culture. I'd like to think everyone's having fun, but maybe they're not. In terms of startups listed by yearly revenue segment, you can kind of just look at this, but less than 100k, we're seeing about 20, 20, 27 million, 100k to a million, we're seeing about 195 million. And you can just see kind of the trends increasing. And the most important one is the far right, which is the larger startup. So that's 1 million in recurring revenue or more. And that's really our goal is we don't, we want to differentiate by being the place that you come to. If you have a company that's making hundreds or millions in revenue and we have all the third party services, you need from advisory to financing to different types of tooling like escrow or data rooms. So that's the vision for Microacquire is we want to move away, we want to go macro more than micro. We'll always list smaller startups, but we want to help real software companies that have, you know, really reached, you know, it's going to be a great outcome for the founder where, you know, they're potentially going to be a millionaire. It's going to be a life changing acquisition. So all the tools and all the ways that we're thinking about building the business kind of revolves around that. How do we get founders that are looking to sell companies for, you know, 1, 5, 10, 50, upwards of 100. I think we can get there over time. Like this past month we did, you know, 20 million in 17 million in acquisitions. And I think that's just going to increase over time as we get better with connecting. If it's a life changing acquisition, you should definitely hire professional help. We're providing that with reviews and ratings and so you can really have a huge choice of people that you potentially might want to work with. New listings by month. Not a lot of growth here, but this is also kind of by design. So I'll kind of skip over that because I have a slide that explains a little bit more marketplace activities exploding. We saw about 28,872 messages sent between buyers and sellers in September, which just means every single day people are conversating about acquiring companies. So there's probably a large amount of deals under offer under LOI that we're unaware of that were working on getting better tracking for. My whole team is just hungry for data. So that'll be interesting to see how the next few months play out, given out how because acquisitions can sometimes take, you know, months, you know, so I think we're going to see a nice uptick pretty soon here. So another thing that we definitely put a huge emphasis on is maintaining a carefully curated marketplace. So every listing that goes live on microquarter is approved, approved by my team. We review it, we look at it, we put it through a couple checkpoint due diligence process. It's not as rigorous as a normal broker, but with a normal broker you kind of get a prospectus where everything is just amazing. So it's like reverse due diligence. The market's growing, this is a huge opportunity and so, you know, we have a checklist like that, but we take a more of a third party stance in terms of how we list them. We just List the facts. We don't try to sell the startup to a buyer. We just list pertinent information that would tell them what do they do, what's their revenue, what's your tech stack, who are their competitors, what are some potential opportunities. And then we leave it up to the buyer and seller to negotiate from there. Moving on. This is probably maybe my favorite slide of this whole deck. So again, we want to be the place where startups are sold for millions of dollars. I would much rather see 30 companies get acquired for millions of dollars and 500 companies acquired for, you know, 10k each or something like that. And we're moving in that direction. And so company size, we're up 64% from last year. So increase in average annual occurring revenue year to date versus 2020 is up 64% and that just continues to rise. So that is a metric that we track religiously because we're always. And we're also rejecting smaller startups. We no longer accept pre revenue. We're very picky if it's startup doing less than say 10k in revenue or something like that. Because we want to be known as the marketplace that you come to if you're looking to make, if you're looking to buy a real company with substantial revenue, with profit, that's a healthy business rather than a side project or you know, a mini, you know, micro SaaS company. So we'll again, we'll always continue to list those, but that's kind of like a big change that's been happening within the business that I've really enjoyed watching. What else we got? So we quint tripled registered buyers this year. So that's a 528% increase. Registered buyers increased 16% in September as opposed to 20% in August. So a little bit of a slowdown, but not by too much. We're still seeing about three to four to 500 signups per day, just depending on the day of the week and final slide. How can you help? If you know of any startups looking to sell, feel free to refer them over to, over to us. We'll take great care of them. I promise. I'll roll out the red carpet and we'll ensure that they're positioned well. They're in our newsletter within a week. Those are other things that we've been working on is getting startups in the newsletter faster, getting shared on social media faster, getting in front of buyers faster and just support on social media is great and brand building. If you have a newsletter, podcast, interview, count me in. I'd love to chat with you, but thanks everyone for just all your support. This is a really interesting business that we're building and we feel that within the next month, as we release the M and A directory and the valuation tool, the vision of microquire is really coming together and we're really delivering on that vision of being the Zillow of M and A. And so, again, thanks for everyone's support. If you have any questions, feedback, feel free to reach out. And until next month, cheers.