I’m a tech founder who spent 10+ years running Attendify, an event tech company, prior to our exit last year. At our peak we reached $6m ARR with over 2,000 active clients and 80+ employees. I'm exploring what's next and want to stress test my thinking...
Acquisition: I'm starting a search for a business in the Los Angeles area. I’m excited to roll up my sleeves and have no problem running a “boring” business, I really don’t believe in the notion. It’s easy for me to get excited about anything I’m working on. I’m currently building my acquisition thesis and financial model, but there are a few targets that seem attractive… landscaping/nursery, early education, physical therapy (with the right partner). I’m conscious of not buying something too small, eventually a manager will need to take over.
Startup Studio: My goal is to use the cash flow from the acquired business to fund a startup studio working primarily on vertical SaaS. It’s harder than ever to start with one idea and create a successful tech business. It could take 5-10 MVPs and 1-2 years before building something with the potential to become a $10m-$20m ARR business. To that end, I invested in a product agency that is itself focused on helping proven founders build their MVPs and grow tech teams.
I’d love your feedback...
- Is anyone in the community running a similar model?
- What are the pitfalls that immediately come to mind? Buying too small, spreading yourself too thin, etc?
- From an acquisition standpoint, what are the industries to avoid?