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 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
Helpful to the founder ecosystem:
• Founders of smaller businesses have an opportunity to (partially) exit
• Founders get more (and competing) offers
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
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 :)