BitsForDigits
About the Company
BitsForDigits was created to serve as a marketplace for profitable internet startups and online businesses. These businesses, including SaaS, eCommerce, and mobile apps, often reach a point where their owners seek liquidity, either through partial or full buyouts. The platform offered anonymity for business owners, making it a safer and more appealing option for those looking to exit their business. The unique part about BitsForDigits was that it charged only the acquirers, making it free for founders to use.
The business was fully bootstrapped, meaning it was self-funded by its founders without external venture capital. At the peak of its operations, BitsForDigits was making $6,000 in monthly revenue. Much of its early growth was driven by a successful launch on Product Hunt, which brought over 300 users to the platform. This solid user base helped the company monetize the marketplace, growing steadily from there.
By relying on organic growth strategies like SEO and community engagement, BitsForDigits thrived without spending any money on advertising. The company’s initial traction came from communities like IndieHackers and Twitter, where the founders engaged directly with potential users.
Idea Behind Company
Laurits and Jan-Philipp first met in college in Copenhagen, Denmark, in 2016 and remained friends after graduation. Both had strong backgrounds in finance and tech, with Laurits working at BlackRock and Jan-Philipp working for Facebook and Google. They were inspired by the Basecamp founders, who had sold part of their company to Jeff Bezos while retaining enough ownership to continue operating the business. This transaction allowed them to get liquidity without giving up control.
The concept of partial acquisitions intrigued them. They saw a growing trend in which startup founders sought to sell pieces of their business to take some “chips off the table” without completely giving up ownership. However, there was no dedicated marketplace for this kind of transaction. Seeing the gap in the market, they decided to create BitsForDigits to serve as a centralized platform where founders and acquirers could meet and negotiate.
Their experience in both the finance and tech industries positioned them well to build and scale the business. They conducted extensive research and interviewed potential users to validate the market demand before creating the platform. Their target audience became owners of bootstrapped internet businesses and micro private equity acquirers looking for investment opportunities.
Creating the Company
Neither Laurits nor Jan-Philipp had deep technical expertise in programming, but that didn’t stop them from building the initial version of BitsForDigits using NoCode tools. They opted for Webflow to create their website, which allowed them to develop a beautiful and functional site without needing advanced coding skills. To handle membership features, they partnered with MemberStack, which integrated seamlessly with Webflow. For communication between users, they used MemberChat, which enabled chat functionality on the platform.
These tools helped them create a simple yet effective MVP (Minimum Viable Product) that allowed users to post businesses and investor profiles and negotiate deals. The MVP cost them just $90 a month in subscription fees, making it a cost-effective solution for testing the platform’s functionality and market fit. They also worked with the international law firm Hogan Lovells to ensure that they remained compliant with regulations in various jurisdictions.
This lightweight and low-cost approach to building the platform allowed them to maintain full ownership of the company without the need for external funding. The founders were able to focus on growing the business organically, staying true to their bootstrapped roots.
Launching the Business
The official launch of BitsForDigits happened in December 2021 on Product Hunt. This launch was instrumental in validating the idea and bringing in the initial wave of users, as the company achieved the status of #2 Product of the Day and became a finalist in Product Hunt’s annual Golden Kitty Awards. This exposure helped seed the platform with initial listings and acquirers.
As the business continued to grow, the founders engaged with communities like IndieHackers and built a strong following on Twitter. Their organic growth strategy relied heavily on community engagement, where they actively participated in discussions and offered value without expecting anything in return. This approach helped them build trust and attract a dedicated user base.
Despite not spending anything on paid marketing, BitsForDigits managed to grow steadily. The founders focused on three key areas: community building, content marketing, and direct sales outreach. They believed that solving problems for their users was the best way to grow, and they frequently shared insights from their journey to further build relationships with potential customers.
Earnings
BitsForDigits quickly gained traction after its launch and began generating a steady income of $6,000 per month. This revenue came from charging acquirers for access to the platform, while founders could list their businesses for free. Over time, the company expanded its product offerings, adding new features to cater to the growing needs of startup founders and acquirers.
Despite the ups and downs of running a startup, Laurits and Jan-Philipp focused on maintaining profitability while growing organically. They hired a small team, including one full-time employee in Berlin and two part-time remote assistants. The future looked promising as they aimed to expand the platform further and add more liquidity solutions for founders.
In 2024, BitsForDigits was acquired by Flippa.com, marking the end of its run as an independent company. The acquisition was a natural progression for the founders, as Flippa is a major player in the online business acquisition space.
