🛴 The Micros: SaaS, Caps & Stakes

In this week's newsletter I discuss microsaas, crypto microcaps and investing in microstakes poker players

Feb 09, 2022

Hi there 👋

Look out for an announcement in next week’s newsletter that will dramatically boost the Alts Cafe alternative investment community…

In this week’s newsletter I discuss:

Defining microsaas
Investing in crypto microcaps
Domain squatting BAYC founder
Betting on poker players

Remember, every heading is a channel in the Discord - come join over 160 of us.

Join the Alts Cafe Community

#microsaas

Microsaas is a relatively new term that people are still trying to define. I thought this tweet by Yaro (who is currently selling his own microsaas featured in last week’s newsletter) made a lot of sense:

Yaro Bagriy @yarobagriy

Microsaas are usually built on platforms or interface with platforms. SaaS is the platform. This is how I differentiate between the two.

Examples would be chrome extensions and shopify apps.

I then wondered if it could make more sense to define based on valuation, which Yaro agreed could work:

patey.eth 🦁 @RichardPatey

@yarobagriy like it! Could it also be defined on MRR / asset price? Perhaps sub 6 figs valuation?

Yaro Bagriy @yarobagriy

@RichardPatey That could definitely be a criteria! Sub 6 fig evaluation seems fair too. Micro in terms of the size that a SaaS could be valued at

For example, all the SaaS deals on the brokerages have multiple six figure valuations - they need to be in order to make the 15% broker fee they take valuable enough.

On the Flippa marketplace you get those 6 and 7 figure listings, but you also find a lot of smaller ones, almost 300 of them under $100K using this search string:

What’s your definition? Hit reply or come comment in the #microsaas channel in the Discord.

#crypto

How should we be investing the money we have allocated to crypto? Foodfarmer has a good playbook based on your portfolio size:

Foodfarmer.eth 🧑‍🌾 @rektfoodfarmer

If you have under $100k to play with. Focus on projects under $30m Market Cap. You are in the growth stage of your portfolio, do not prioritize yield. Prioritize Growth. Get them 3-5x's, Get in something at $10m and ride it up to $50m etc. This is where you make your $$$

I’m still prioritizing growth with my portfolio which is why I’m doing very little yield farming and instead focussing on 10x opportunities with microcap cryptos.

#nfts & #domains

Well this is an interesting one.

As a previous mutant ape holder (I flipped for 2x but should have held), a large part of the appeal of the Bored Ape Yacht Club was the fact that the founders were an enigma - no-one knew their real world idendities.

Until Buzzfeed did some ‘journalism’ and doxed two of them:

Adam Hollander @HollanderAdam

What @BuzzFeed did today to the #BAYC founders was not only unprofessional - it was downright dangerous. It's one thing to dox someone who's done something wrong or unethical. That's not what this was. Buzzfeed should apologize and pay for each to obtain personal security.

What I found most interesting was that one of the founders did some domain name squatting buying up bitmex.guru, a funky TLD ending to a live trademark:

You need to be very careful with trademarks when buying domains, especially if you are intending to build a site out on them. This is why I use Odys for aged domains for content sites as they do all the checks for you.

#poker

The poker website PocketFives has a staking marketplace where you can buy pieces of top tournament players, such as Daniel Negreanu and the player/investor Brock Wilson who has been recently cashing for his backers:

PocketFives @PocketFives

Congratulations to Brock Wilson (@BWilson9999) on his runner-up finish in Event #4 of the 2022 @PokerGO Cup + congrats to all his backers who had a piece of his $195,000 score! Brock has more action listed at PocketFives! Get some right here: staking.pocketfives.com/staking/market…

PokerGo partnered with Pocket Fives to offer a free $20 bet for an annual subscription to their content. I used that $20 bet to get 0.03% of Brock’s potential winnings from today’s $50K buy-in tournament:

I’m not sure what the prize pool looks like yet but I’ll be sweating Brock later today, tuning in to the PokerGO Tour live reporting team. I’ll report back if I cash.

Myself and duffx within the #poker channel in the Discord feel there is a lot of potential within poker for investors to make a return.

One area we’re exploring is how we could back profitable micro-stakes cash players who lack sufficient bankroll for larger games.

It wouldn’t be a coaching-for-profit program such as by Poker Detox as:

a) I don’t have the time to coach

b) I’m no longer playing

c) my win rate wasn’t exactly crushing the game:

But I’m always looking to deploy capital into alternative investments and there’s certainly a huge overlap in the skills and personalities required for online business, poker and crypto.

Ok that’s it for this week.

If you’re reading this on the web and you’re not yet subscribed just hit the button below.

And come join the discord where we discuss:

Join the Alts Cafe Community

And feel free to follow me on Twitter.

Cheers!

Richard

Nothing in this email is financial advice and I'm not a 'professional investment adviser'. I send weekly updates on what I'm doing personally - consider it 'informational' and 'for entertainment purposes only’ (as the podcasts say).

Flippa