NanoBets: MVP #2 Micro-Acquisition Marketplace

If there aren’t enough of those, I am joining the micro-acquisitions market place thingy.

Yes. That’s the second MVP that’s not very unique (third one will be either btw) but I have my reasons.

And also yes, the directory hasn’t launched yet but I need to think way ahead in order to meet my goals.

On a daily basis, myself, someone in my crew and others like Casey (doing an acquisition with him) are scouting the market to buy micro-businesses.

But the process is to say the least daunting.

Problem I am facing is: I need to get to volume and acquire at least 25 in 2024 and hopefully one day 200 in an entire year to complete my Everest.

So, instead of me scouting the entire web, I want them to come to me instead.
It removes a part of the friction if done right and at least I would acquire enough data to follow market trends a bit more closer.

But there are immediate challenges launching one of those.

Challenges


Cost of running it

The build isn’t the problem. It’s the rest that will make or break this entire MVP.

My realization is the manpower required to actually build a micro-acquisitions marketplace that makes sense. I am not expecting to struggle with finding new listings, but I am worried about the curation and vetting process.

If you look at Andrews’ Acquire.com, you know that’s a different level and they have been tossing the idea to eliminate the micro-projects but aim for companies with established revenue.

Thing is that Acquire.com isn’t a one man’s job. Unlike lots of other places, because Andrews’ model runs on a different DNA.


If I plan to do this right and follow a growth to scale playbook, then this will induce a huge burn on Human Resources, time allocation and brand strategy to beat competitors.


Just like the directory MVP, I am expecting to run at least on a 2 year negative balance sheet before seeing significant upside. But I do know that this MVP will require a lot more burn than a directory.


Currently, it’s unclear for me but I am going to document the entire process and line of thinking in NanoBets.


DNA & Quality


I cannot let my own path decide on the DNA, but there are crossovers. My fear is that if I am going to allow anyone to list their project, it will turn into a shit show with the same vibe you would expect from pump and dump crypto schemes.


So I should apply some of the risk parameters and playbook I apply when I were to source projects and based on that reject or allow them to list. It would set the tone for the shorter term future with the option to clear a path to even more stricter models.


And I believe that my thesis and planning here will give me clarity once set on paper. So the positioning of the marketplace can send the right signals to the sell and buy side.


Brokerage


I am still undecided on that. Whether I want to broker the deals through escrow or place more safeguards for both sides. And after some thinking, I plan to just list them based on a vetting and curation process with clear disclaimers that buy side needs to be aware of risks involved.


Because right of now, I do not know how much logistics and compliance it will take to bring this endeavor to a new level.

After all, it’s an MVP and MVPs are nearly just models in early shape that are unproven with lots of leaks.

Monetization

Fuck, I don’t even know where to begin. Because it’s hard to monetize this model without pissing off at least one side of the table. But I am not a charity and money needs to be made one way or another to make the model survive without abandoning it.


My immediate thought would be putting up a paywall for the both. So it sends a blocker to sellers not to entertain them flooding my inbox with projects I would probably reject.

Thinking about pay per listing with a newsletter highlight, but I am nowhere near the idea just yet.


The buy side would go on a traditional model like any other marketplace and pay for a yearly subscription only with early adopters grandfathered into a 90% discount. At least something along those lines.


Looking at the sub models from other places, I think it’s widely acceptable and I don’t see any reason for me to devalue the entire marketplace when I am clearly baking parameters and conditions into the DNA of the business.


But, it’s all wild speculation for now and that’s where I am at.

Close


I wanted to write about this today because I have been revising my investment thesis and approach in micro-PE. Nothing great, but more building my own process on how to vet en masse without fucking up my timetables.

Nonetheless, I primarily want to point out that I am thinking always 1-4 quarters ahead of my horizon and it’s no difference launching 6 MVPs in 1 year.


I will include some of the progress in my personal newsletter so feel free to subscribe.

  • For more focused advice or actual coaching, I would suggest to take a look at LaunchPad.
  • If you are looking for a more private circle of entrepreneurs, then you can join me on Discord with FocusX
  • Looking to start out? NanoBets might be a great place to start with.