Key Points From the Interview
Andrew Pierno and partners have acquired 3 micro SaaS businesses since December 2020, with the plan to build a portfolio under the XO Capital umbrella.
Their first acquisition was Screenshotapi.net, a service developers use to grab screenshots of websites. The business was doing $550 MRR; they bought it for $23,000, or 3.5x ARR.
The model of assembling micro SaaS's into a portfolio is proving difficult. 2 challenges are the technical debt of the codebases, and that the modest revenues don't permit hiring outside help.
Andrew remains bullish. As evidence of the potential, Andrew & team increased revenues 5x for one of their acquisitions and 3x for another in less than a year of ownership.
As one refinement of the model, they are considering moving to larger acquisitions where revenues would give them more to work with.