Wednesday , August 17 2022

Flippa releases data on buying and selling activity over the first quarter of 2022

Flippa Stats 2022

Flippa CEO Blake Hutchinson published a update that provides a detailed statistical look into the website. Looking at things like, Buyer type by average budget and The number of assets that each buyer type wants to acquire.

Now, the real stuff. This quarter alone (Q1 2022) the new buyer wallet represents $32.5BN and the follow on effect means more competition for good deals. Private Equity is competing with aggregators, high net worths are going head to head with other institutional investors and there’s frothy demand for maturing asset types.

Take apps for instance. There’s a surge in demand as 1000 app publishers earned 1 Million or more for the first time ever and total Android and App revenues exploded 19% to $133 Billion (source: Business of Apps).

We actually saw our biggest app deal this quarter. A Singapore based portfolio of apps generating $12MM of revenue and growing ~30% annually was acquired for upwards of $30MM inclusive of upside payments from an international app publisher.

I’ll go into more detail on actual deal values below but for the moment, let’s break these buyers down a little –

For the period January to March 23rd:

  • 30,774 buyers joined Flippa
  • 14,107 completed profiles and were broken down into three buyer types:
    • Company – defined as an established organization looking to grow through acquisition
    • Entrepreneur – defined as a full time entrepreneur looking to own and operate
    • Side Hustler – defined as a prospective buyer looking to earn a side income
  • Companies only made up 8.9% (1,255) of overall buyers but with an average budget of $3.9M, this cohort dwarfs the other two – see chart 1.
  • 76% of Side Hustlers intend to buy more than one asset. This is interesting. Side Hustlers tend to buy multiple assets. They run them all separately – typically content assets or apps – and they amass small fortunes – see chart 2.

Read the whole report here

The post Flippa releases data on buying and selling activity over the first quarter of 2022 appeared first on TLD Investors.

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