Micro SPAC Investment Model
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A new model for acquiring small businesses by pooling capital from multiple investors to help entrepreneurs buy existing revenue-generating companies.
Core Concept
- Pool small investments ($5K-$100K) from multiple investors
- Use funds to acquire existing profitable businesses
- Focus on revenue-generating companies that just need operational improvements
- Described as "just add hustle" - business infrastructure already exists
How It Works
- Find entrepreneur who wants to run/buy a business
- Raise capital from multiple small investors
- Vet 50-100 deals on platforms like MicroAcquire
- Purchase revenue-generating business (often Shopify apps or SaaS)
- Entrepreneur operates and grows the business
- Regular investor updates provided
Benefits
- Allows operators without capital to acquire businesses
- Connects builders with operators who can scale
- Matches sales/marketing expertise with existing products
- Creates opportunity for small investors to participate
- Provides "ready-made" business for entrepreneurs
Market Network Dynamics
- Similar to AngelList's evolution
- Connects multiple parties with financial transactions
- Money flows between different participants:
- Investors to operators
- Buyers to sellers
- Service providers to clients
- Creates ecosystem of related services:
- Due diligence
- Accounting
- Wealth management
- M&A advisory
Future Potential
- Could streamline process for raising acquisition capital
- Opportunity to match operators with investor capital
- Potential to scale across different business types
- Platform for facilitating micro-acquisitions at scale
32:54 - 35:45
Full video: 01:05:29SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.