The Rise of Micro Private Equity 💸
What is "Micro PE"?
An investor who acquires or buys into small (or better “micro”) businesses.
Target companies: valuations below US$ 5 million, stellar cash flows & leaders in their respective niches
Micro PEs vs. other investors
Micro PE: valuations below US$5 million
Traditional PE: valuations above US$5-10 million
Micro PE: profits & dominating a niche
VC: growth > profits
Micro PE: later stage
Angel Investor: very early stage
Selected Micro Private Equity firms
- Calm Capital
- SaaS Group
- Owl Mountain Capital
- Tiny Capital
- XO Capital
- WeCommerce
- Thrasio
- Sureswift Capital
- Mudbrick Capital
- LTV SaaS Fund
- Goja
- Concrete Capital
- Onfolio
- Dura Software
- Chenmark
Selected Micro Private Equity marketplaces
Selected Micro Private Equity brokers
Micro PE’s impact on founders
Helpful to the founder ecosystem:
• Founders of smaller businesses have an opportunity to (partially) exit
• Founders get more (and competing) offers
Trends
Increasing interest in partial buyouts
➡️ Easier vor Mirco PEs to scale and manage
➡️ Opportunity for founders to take cash off the table
Read more here: The Rise of Micro Private Equity
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Solid article! My goal is to build myself a small portfolio of 2-4 microsaas businesses to run.
Thank you! Also, great goal to have. Have you checked out the MicroAngel newsletter by @eyal ? I think he is doing something similar and is documenting his learnings.
Thanks for the mention JP!
I haven't but I'll check it out :)