Tiny

Tiny is a direct acquirer of profitable, founder-owned businesses that it buys outright and holds for the long term rather than reselling. Co-founded by Andrew Wilkinson and Chris Sparling, the company positions itself as an alternative to private equity firms, strategic acquirers, brokers and marketplaces, offering full or partial cash-outs, simple deal structures and no mandatory earn-outs. Founders who sell may stay to run the business, move to an advisory role, or leave shortly after closing.

The portfolio spans software, services and consumer products. Tiny describes owning a film-logging social network used by 29 million people, DJ software used in a quarter of the world's clubs, a coffee brewer sold in 70 countries and invented by a Stanford professor, a product design agency whose work is behind 24 unicorns, a community of 16 million designers, and 16 other businesses. Named holdings referenced include Dribbble and the AeroPress coffee maker. As stated on its site, Tiny owns 21 companies generating more than $260 million in annual revenue, with products used by over 100 million people.

Tiny's stated acquisition criteria include profitability, a business model simple to explain, at least three years of operating history, a defensible position such as a recognized brand or an engaged community, a team worth retaining, healthy margins, and a founder invested in the company's continuity. Deals range from $5 million to $300 million, and Tiny states it has paid over $100 million for individual companies.

Founding story

The founders started Tiny after selling a company themselves, an experience marked by a months-long process, prolonged diligence, a last-minute price change over a small accounting variance, and a new owner who cut staff and changed the culture they had built. They set out to build the buyer they wished they had had.

Business model

Tiny acquires whole companies using permanent capital and retains them indefinitely, generating returns from the ongoing profits of the businesses it owns rather than from resale. It pays mostly cash upfront, avoids preferred equity, ratchets and debt-heavy structures, and does not run integration playbooks across its holdings.

Revenue comes from the operating profits of the wholly owned portfolio companies, which collectively generate over $260 million annually.

Traction

Tiny reports 21 companies owned after 13 years of acquisitions, a 20-year track record, more than $260 million in combined annual revenue, and products used by more than 100 million people; Dribbble co-founder Dan Cederholm described the acquisition transition as smooth and non-disruptive.