🛴 The Micros: SaaS, Caps & Stakes
In this week's newsletter I discuss microsaas, crypto microcaps and investing in microstakes poker players
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.
#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:
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:
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:
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:
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:
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.
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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).
Great newsletter. The poker staking marketplace is interesting. Could you use a DAO or private investing 'club/community' to back players who lack sufficient bankroll?