Starting a Search Fund...
1st Week Launching a Micro Search Fund
After 8 years I am departing from the tech startup world….kinda. While I have jumped ship working at startups I am now launching a search fund to buy startups. Our mission is to buy software tools to make launching a software product easy for people like you and me.
I am embarking on this journey with a blank canvas and a bit of imposter syndrome.
Subscribe to this newsletter where I’ll be sharing all my stories and learnings.
A Unique Approach
Everyone in the Valley wants to compete in the arena. You’d be staggered going to a party in the City and not have someone lay their great idea on you. There is an energy that’s in the air. It’ll often tap you on the shoulder asking, “Will you be the next Steve Jobs, Google, or a16z?” This is why big rounds of funding and massive valuations are so common. Everyone is chasing that next big thing.
I’m taking a different a approach.
My approach is two fold. 1. build a brand-based search fund and 2. acquire a portfolio of micro-SaaS businesses. While most search funds orientate more towards the PE/Operator side of the spectrum I am taking the side closer to the VC/Founder model. We buy early stage software products to grow and scale. Focused on lean businesses our goal is long term, consistent cash flow.
The Technicals
Like most of you, I am new to this world. I'm sharing my experience for anyone interested in launching a Search Fund or just curious about the space.
Behind every search fund is a PPM or Private Placement Memorandum which covers the fund’s Investment Thesis and Acquisition Criteria.
Our Investment Thesis is simple - We buy software tools for solopreneurs.
The types of tools are not defined because our goal is build a portfolio of tools. These tools will range from setting up a website to building brand presence to managing clients.
We are focused on solopreneurs because the recent progression of AI has democratized the playing field of starting a business. We want to be at the forefront, offering the picks and shovels, for 9-5 employees to step into the world of launching their own product.
Outlined below is our Acquisition Criteria:
Software-based or Software-integrated Business
Small Team (no more than 10, ideally 5 or less)
Minimum $1,200/mo in revenue or at least 25 paying customers
No Debt on Balance Sheet
What Awaits on the Horizon
I will be sharing everything I have learned and new learnings to make this as much of a comprehensive guide as possible. If there is anything you would like to hear about feel free to email me.
Going forward, my goal is to submerse myself as much as possible in the industry. I’ll be doing this by talking to industry leaders and other searchers.
My goal is to talk to three people per week:
(1) Industry Leader (Fellow Searcher)
(1) Business Owner (Seller)
(1) Investor (Technical Breakdown)
If you know anyone who fits the bill my DM’s are open for intros.