After evaluating hundreds of micro SaaS businesses and completing multiple acquisitions, we've arrived at a counterintuitive conclusion: the business model matters far less than the people who built it.
This might seem strange coming from a holding company focused on acquiring software businesses. Shouldn't we care deeply about unit economics, market positioning, and competitive moats? We do. But we've learned these factors are secondary to something more fundamental.
The Universal Mechanics of Growth
Every software business, regardless of industry or model, operates on the same fundamental principles:
- Acquire customers through marketing, sales, or product-led growth
- Deliver value that exceeds the price paid
- Retain customers by continuously solving their problems
- Scale efficiently by improving processes over time
These mechanics are universal. A vertical SaaS serving dentists operates on the same principles as a horizontal tool for project management. The tactics differ, but the underlying framework is identical.
This universality means business models can be learned, adapted, and optimized. What cannot be replicated is the culture, values, and customer relationships that exceptional founders create.
What We Look for in Founders
When evaluating a potential acquisition, we pay close attention to how founders talk about their customers, their team, and their product. The signals we value most:
Deep Customer Empathy
Founders who know their customers by name. Who can explain not just what their product does, but why it matters to the people using it. This empathy creates products that customers genuinely love, not just tolerate.
Resilience Under Pressure
Every business faces existential moments. Server outages at 2 AM. Key customers threatening to leave. Competitors launching aggressive campaigns. How founders respond to these moments reveals more than any metric dashboard.
Commitment to Quality
Some founders ship features to hit deadlines. Others refuse to release anything they wouldn't be proud of. The latter builds products that compound in value over time.
Why This Matters for Acquisitions
When we acquire a business, we're not just buying code and customers. We're inheriting a culture. The relationships the founder built with customers. The expectations set with the team. The reputation in the market.
A business built by a founder who cut corners will require years of trust-building with customers. A business built by a founder obsessed with customer success gives us a foundation to build upon.
This is why we focus heavily on the transition period. We want to learn from founders, understand the decisions they made, and preserve what made their business special. We're not looking to "fix" what's broken—we're looking to amplify what's working.
Implications for Sellers
If you're considering selling your micro SaaS, know that we evaluate businesses differently than traditional buyers. We care less about perfect financials and more about:
- How your customers talk about you
- Why you built what you built
- What you're most proud of
- What you wish you'd done differently
The best acquisitions happen when founders are honest about both strengths and weaknesses. We're not looking for perfection—we're looking for authenticity and a foundation we can build upon.
The Long-Term View
Our investment thesis is simple: find businesses built by exceptional people, acquire them at fair valuations, and give them the resources to grow while preserving what made them special.
This approach requires patience. It means passing on businesses with impressive metrics but concerning cultures. It means paying more for businesses with strong customer relationships. It means measuring success in years, not quarters.
But we believe this is the only approach that creates lasting value—for us, for the founders we work with, and for the customers we serve.
Considering Selling Your SaaS?
We'd love to learn about what you've built and why it matters to your customers.
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