Tiny Capital

Tiny Capital, based in Victoria, Canada, is a distinctive holding company founded by Andrew Wilkinson, known for its unique approach to acquiring and operating internet businesses. Unlike traditional venture capital firms that typically make minority investments in early-stage startups, Tiny Capital focuses on purchasing majority stakes or entire profitable companies, with a long-term, often permanent, hold strategy. This model allows them to provide stable, long-term homes for businesses, offering operational support and capital without the typical exit pressures of a VC fund.

The firm's acquisition strategy targets a diverse range of internet-based companies, including SaaS platforms, e-commerce brands, and digital media properties. Tiny seeks businesses that are already profitable, often with a track record of consistent revenue and strong cash flow. They are particularly interested in companies generating between $1 million and $10 million or more in annual EBITDA. This focus on established, cash-generating assets distinguishes Tiny from venture capital firms that primarily fund high-growth, pre-profit startups.

While not a traditional venture capital investor, Tiny Capital's "check sizes" represent the acquisition values of the companies they purchase. These acquisitions typically range from approximately $5 million for smaller, yet profitable, businesses to well over $100 million for larger, more established entities. For instance, their portfolio encompasses over 30 companies, including well-known names like Dribbble and Metalab, demonstrating their capacity for significant transactions.

Tiny Capital's success stems from its disciplined acquisition criteria and its ability to integrate companies into its ecosystem while preserving their unique cultures. Their model provides an attractive alternative for founders seeking an exit that prioritizes the longevity and continued development of their businesses over short-term financial gains.