BitsForDigits

BitsForDigits operates as an online acquisition marketplace tailored for profitable internet businesses, including SaaS, e-commerce, and mobile applications. Established in 2021 by co-founders Laurits Just and Jan-Philipp Peters, the Berlin-based company carved a niche by focusing on startups and online businesses with a minimum of $100,000 in annual recurring revenue. The platform was designed to facilitate both full and partial acquisitions, providing a means for founders to achieve liquidity by selling their entire company or just a minority or majority stake.

The inspiration for BitsForDigits came after the founders observed the partial sale of Basecamp to Jeff Bezos, identifying a market need for similar, smaller-scale liquidity events for bootstrapped entrepreneurs. Jan-Philipp Peters, originally from Germany, studied business and gained experience at tech companies in Ireland, while Laurits Just was based in London. The duo chose Berlin to launch their venture, leveraging the city's supportive startup ecosystem and lower operational costs. Despite not having technical backgrounds, they successfully built their initial product using no-code development platforms.

The business model is structured as a marketplace that connects business owners with potential acquirers. A key differentiator is its revenue structure; the platform is free for founders to list their companies anonymously, ensuring confidentiality. Revenue is generated by charging buyers a subscription fee to access detailed listings and initiate contact with the sellers. This model aims to reduce friction for sellers and attract a higher volume of quality listings. In June 2023, the company partnered with Escrow.com to provide secure payment processing for its users. In a significant milestone, BitsForDigits was acquired by Flippa.com, a major marketplace for buying and selling online businesses, in December 2023. This acquisition was a strategic move for Flippa to expand its footprint in the European market and cater to higher-value deals.

Keywords: acquisition marketplace, M&A platform, sell startup, buy startups, online business acquisition, partial acquisition, founder liquidity, e-commerce M&A, SaaS acquisition, bootstrapped startups, business exit, secondary transactions, tech startup M&A, European startups, online business marketplace, Jan-Philipp Peters, Laurits Just, startup exits, sell online business, buy profitable business, Flippa, digital asset marketplace, tech M&A, small business acquisition