Dec 22, 2021 - Economy

MicroAcquire raises $5 million for its startup sale marketplace

Illustration of a handshake, repeated backward several times.

Illustration: Brendan Lynch/Axios

MicroAcquire, an M&A marketplace for small profitable internet businesses, tells Axios that it's raised an additional $5 million at an $80 million valuation, just months after closing $6.3 million in seed funding from firms like Shrug Capital.

Why it matters: Only a small percentage of startups raise venture capital, and an even smaller sliver make it to IPO or a broker-led sale process, so platforms like this could open more realistic exit paths for typical entrepreneurs.

Details: Founded in January 2020, MicroAcquire says it has more than 100,000 registered buyers, more than 2,000 companies listed for sale, and has facilitated more than 500 deals with a combined value of more than $200 million.

  • It currently generates revenue by charging buyers a subscription fee to have full access to the listed startups and be able to contact them, although it plans to start taking a transaction fee (2-3%) next year, says founder Andrew Gazdecki.
  • It's also added a marketplace for deal vendors like lawyers, advisors and bankers, and has inked partnerships with AngelList and Pipe for deal financing (though most sales are still done fully in cash).
  • This latest cash infusion was prompted by existing backer Shrug Capital, with other existing investors jumping in to fill out the round within three days.

The bottom line: While MicroAcquire serves small, mostly bootstapped companies, Gazdecki has much larger (and VC-funded) ambitions: "We don’t want to participate in the M&A market—we want to create the M&A market," he tells Axios.

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