Alphabet (Google’s parent company) is lining up around $35 billion to acquire Hubspot: at least, so says the rumors. Rumors aside, one of the biggest acquisitions of 2023 was that of Silicon Valley Bank by First Citizens Bank for $17 billion. 

While these mega-acquisition deals are what do the rounds, they make up less than 1% of all acquisitions. This is because buying and selling a large business can be painful and risky. Typically, the sales process is lengthy, spanning around a decade. Also, many such business deals fall through, and there’s no guarantee the acquisition will be as profitable as expected. Hence, big tech firms are exploring other less risky options: the acquisition of micro-startups. According to Bain, tech companies now prioritize buying businesses based on their scope rather than scale in a ratio of 9:1. 

In this article, you’ll learn what micro-startups are, the difference between micro-startups and small businesses, and why they’re becoming attractive acquisition targets.

What is micro-startup acquisition?

A micro-business, popularly known as a micro-startup, is a small enterprise with fewer than ten employees. Most times, it begins as a side project aimed at addressing a niche problem faced by the founder or is designed to create affordable niche solutions to otherwise bloated software. 

Therefore, micro-startup acquisition is identifying and purchasing very small companies or projects with the potential to scale. While most micro-acquisitions go unreported, micro-acquisitions make up the bulk of business acquisitions. For example, on Microns, we facilitated the sale of 40 startups in 2023, and we’re one of many other acquisition platforms.

Your next question may be: what’s the difference between a micro-business and a small business? According to the US Small Business Administration, small businesses employ fewer than 500 employees. Micro-businesses, on the other hand, are usually teams of around two to five people: the employee count doesn’t exceed 10.

Unlike large startups that rely on external capital injection, micro-startups are bootstrapped due to the minimal resources required to run them. They’re also self-sufficient as they’re built with the goal of profitability from day one. Micro-businesses are usually run by freelancers, solopreneurs, marketers, developers, agency owners, and other business owners. They’re not limited to software companies;

• A blog that generates revenue through advertising and affiliate marketing.
• A Software as a Service (SaaS) platform or digital offering that addresses a particular issue for a specialized market.
• An e-commerce store that markets a distinctive or handpicked product.
• A service that provides a bespoke or personalized experience.

Source: X.com

Benefits of Buying Micro Startups

The chief benefit of micro acquisitions is that you don’t have to fork out huge sums of money or take on debt to acquire large businesses: hence, big brands are now favouring smaller deals to maintain their competitive edge in the market and attract some of the finest talents. Let’s explore the advantages of micro-acquisitions.

Speed to market

Big brands, especially tech firms, have all the funding and talent to launch and scale new products. However, building a product-market fit business isn’t easy. With micro-startup acquisition, you don’t have to bother about investing time and resources in research and development  - people are already paying for the product or service. This then shifts your focus from making the business profitable to scaling it. Plus you can offer the product or service to your existing customers and generate more revenue.

Cheaper prices

Probably the biggest benefit of buying a micro-startup is that it presents a more cost-effective solution to bigger acquisition deals. Google bought YouTube for $1.65 billion nearly 20 years ago. Today, you can buy a micro startup for way less - for as little as $400 - on the Microns marketplace: this is almost risk-free.

So whether you’re looking at exploring entrepreneurship or you’re a seasoned entrepreneur who doesn’t want to go through the hassle of building a startup from scratch, you can find interesting profit-driven projects on our platform. Plus the founder will give you a month of free support.

Shorter sales cycles

Acquiring a large company with hundreds of employees or one that has raised funding, can be a lengthy and complex process. And if you’re frustrated by the neverending back-and-forth negotiations, you may want to consider acquiring a micro-startup. The parties involved are fewer, allowing for a quicker and less exhausting sales process.

On our marketplace, you can buy or sell a business in 30 days or less; some of the acquisitions take just a few days.

Access to talented teams

One of the key advantages of acquiring micro startups is the opportunity to acquire their talented teams. According to the Society for Human Resource Management (SHRM), the average cost per hire was $4,700.

Plus, new hires may not have the same level of expertise in building and marketing the new product. Meanwhile acquiring a micro startup gives you access to a proven product as well as the development team, saving you time on training new hires.

The Winning Mentality

Building a startup from scratch isn’t easy. You have to be innovative and creative, identify a problem, develop the solution, validate the idea, and take it to market. It takes a lot of mental effort, grit, financial commitment, and time to do so. And only risk-takers have this attitude.

Hiring go-getters like these micro teams can be a worthwhile investment in the long run, especially for non-technical founders.

An example is Andy, who sold Android to Google. His energy was pivotal in growing Android and making it a top iOS competitor.

The race for Artificial Intelligence

Since 2022, artificial intelligence has been all the rage, so many micro startups are built around artificial intelligence and machine learning technology. So if you’re able to get a tiny project built around artificial intelligence, you’ve got a rare find as well as its talents.

Where can you buy or sell a micro-startup?

You can acquire a micro-business or an online micro-startup on business marketplaces like Microns.io, Acquire, Flippa, Empire Flippers, etc. However, Microns is the only marketplace on the list that’s specially dedicated to the buying and selling of micro-SaaS businesses. 

There are dozens of profitable micro startups listed on our platform; micro-SaaS products, e-commerce businesses, directories, Shopify apps, newsletters, blogs, content websites, mobile and web apps, chatbots, and blockchain startups. Some of the perks of buying any of the apps or micro startups for sale on Microns include;

• The businesses are profitable
• Access to our secure and fast escrow service (Transfer by Microns)
• We carry out due diligence to fish out scam listings
• Access to some of the most affordable businesses
• One-month free post-sale support

How much do micro-startups cost?

Prices of micro-businesses listed on Microns.io start at $300 and could get up to $500,000 depending on the product or business. However, micro-businesses are valued by finding the SDE valuation, EBITDA, and revenue of the business and multiplying by a multiple. For context, you could pay between 3x and 15x of a company’s revenue: for example, a company making $10,000 in revenue could be valued at between $30,000 and $150,000.

Conclusion

Acquiring a micro startup may just be one of the best decisions you’ll make for your business. However, not all startup projects are profitable. On our marketplace, there are lots of profitable micro-businesses you can buy at a steal. Simply sign up, and we’ll send you listings of profitable micro startups you can buy without breaking the bank.

FAQs

Are Micro-SaaS startups profitable?

Micro-SaaS startups are some of the most profitable businesses you can buy or build. They cost a little to develop, and you don’t have to worry about inventory, as with buying an eCommerce business. Plus, if you implement a solid marketing strategy, that micro-SaaS startup can grow to become a big and profitable venture.

Can I build a SaaS business as a non-technical founder?

Yes, you can build a successful software company as a non-technical founder. Alibaba, Airbnb, and many successful tech companies were built by founders with no technical skills. So if you’ve got no technical skills, you can still build a successful SaaS company. Read our guide on how to buy a micro SaaS startup as a non-technical founder.

What kind of businesses can I buy on micro startup marketplaces?

On the Microns’ marketplace and other startup marketplaces, you can buy profitable micro-SaaS products, eCommerce businesses, mobile and web apps, newsletters, communities, and content websites. The sales cycle is usually short and takes a few days to a month to finalize.