Saas Platform For Breaking News API - SDE 488k - 4.4x

Listing Type (?): Solid

💰 Asking Price: $2.15m
💼 Profit: $448k
📅 Age: 4 yrs

To my understanding this business scrapes/aggregates data and then sells access to it via API. What would make this business GREAT is if other businesses are building their business on top of it, ie reselling the data with further formatting or visual insight.

We can't tell exactly what this business is up to from the listing but what I see is 67k MRR, and $250/m ARPU. The 80% organic customer acquisition is nice and indicates room to grow paid advertising.

On the flip side of the coin legal risk seems like a potential. How are they getting the data? Do they have licensing agreements? Can published block them? Can they sue? Lots of questions. Technical complexity / key person risk also exists. This business seems like it would be constantly subject to bugs/problems. As the web evolves, and the data sources change/update your system needs updating and you need someone that can handle this stuff quickly and reliable. The details of team indicate 9-10 and "engineers" so maybe this is well addressed already but still highly important to consider and ensure continuity. And finally there is competition. Some of the business in this place are massive (Bloomberg?). What's stopping them from coming your line of business? How hard would it be for a competitor to spin up their own data aggregation tool?

At a 4.4x valuation multiple this business might be a good opportunity to jump into a lucrative industry but there's a lot of questions unanswered for now.

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I’m now trying to send these out quicker and from my phone so excuse the lack of formality and proper grammar.