Zero-Down Business Acquisition

Jeremy shares a story about how Tiny acquired a business unit from a Fortune 500 company for essentially no money down.

"A big Fortune 500 tech company bought a business that had two business units. They only wanted one of those units and had to divest quickly. We were able to buy it when it was doing $10 million of recurring revenue. The business was shrinking because it was built on top of another platform that was becoming less popular.

We were able to buy it for so little that we borrowed all the money and paid back the loan in 3-4 months, so we basically got it for free. We bought this out of the Tiny fund and wrote an update to our investors saying 'We didn't call any capital but you now own this new business.'

We also got a domain that's probably worth $1-2 million depending on how fast we wanted to sell it. In the actual fund statement that KPMG does, they had to list the cost basis as $36, which was the actual money that went into the deal.

We found this deal through a board member. We made a bid they didn't like, they shopped it around, but there was a very limited set of buyers who could do a deal really fast. We understood why we had the right to win this deal - money wasn't the most important thing here, so we were able to get it for this great price."