Micro SPAC Investment Model

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
SP

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.

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Restaurateur
E-commerce