Interesting concept. As a builder I like the idea of selling free cashflow for upfront capital, but only if I need that upfront capital. As an investor - I love the idea since Im buying into reliable cash generating businesses but would question web3 as the delivery channel.
Came here from an Indie hacker comment. Very interesting read!
What are your thoughts on a micro-PE type lending solution? So offering a loan for a leveraged buyout of a micro SaaS collateralised by the assets (or MRR) of the biz being acquired itself?
e.g I want to acquire a 250K SaaS generating 10K MRR , so i put (say) 30% down and fund the rest of the loan from the SaaS' (being sold) MRR itself.
This assumes the SaaS is already listed for selling. Today SaaS marketplaces are quite buy-side constrained since banks will not fund acquisitions not backed by "real" assets.
Hence it's actually in favour of SaaS owners since it expands the buyer pool if more leverage(capital) is available to people.
Interesting concept. As a builder I like the idea of selling free cashflow for upfront capital, but only if I need that upfront capital. As an investor - I love the idea since Im buying into reliable cash generating businesses but would question web3 as the delivery channel.
Came here from an Indie hacker comment. Very interesting read!
What are your thoughts on a micro-PE type lending solution? So offering a loan for a leveraged buyout of a micro SaaS collateralised by the assets (or MRR) of the biz being acquired itself?
e.g I want to acquire a 250K SaaS generating 10K MRR , so i put (say) 30% down and fund the rest of the loan from the SaaS' (being sold) MRR itself.
as an investor I love this idea and it would likely work in cases, but why would an owner / seller take this offer? :)
This assumes the SaaS is already listed for selling. Today SaaS marketplaces are quite buy-side constrained since banks will not fund acquisitions not backed by "real" assets.
Hence it's actually in favour of SaaS owners since it expands the buyer pool if more leverage(capital) is available to people.
Yeah for sure totally get it and as an investor I'd ask for it, but as a seller I'd never accent an earnout, I'd just keep / cashflow the asset myself