Service Profits Fund Acquisitions

Andrew Wilkinson built a billion-dollar company by using profits from his design agency (MetaLab) to acquire and grow other businesses, eventually taking the portfolio public through his holding company Tiny.

Core Strategy

• Started with bootstrap design agency MetaLab in 2006
• Used agency profits to acquire companies instead of raising outside capital
• Focused on buying and holding companies long-term rather than flipping them
• Built portfolio through two main revenue drivers:
  • MetaLab (design agency)
  • Dribbble (acquired platform for designers)

Growth Path

• MetaLab Growth:

  • Year 1: $250k revenue with 50% profit margins
  • Year 6: $3M revenue
  • Grew 30% annually after that
  • Current estimate: $40-50M revenue, $20M profit

• Acquisition Strategy:

  • Started buying companies in 2016
  • Focused on software and internet businesses
  • Key acquisition: Dribbble (design portfolio platform)
    • Estimated purchase: $5-10M
    • Current estimated value: $200M+

Current Status

• Taking portfolio public through Tiny
• Company metrics:
  • $150M in revenue
  • $50M in EBITDA
  • ~$1B valuation target
• Ownership structure:
  • Andrew owns 71% of shares
  • Partner owns ~10%
  • Combined 80% ownership retained

Key Advantages

• Based in Victoria, BC: Lower operating costs vs Silicon Valley
• Charging Silicon Valley prices while paying Canadian wages
• Bootstrap approach allowed maintaining high equity ownership
• No outside investors meant freedom to reinvest profits