Micro-SaaS

Micro-SaaS refers to small software-as-a-service businesses built by solo founders or very small teams, targeting specific, well-defined niches rather than broad markets. The 'micro' applies to team size, scope, and often revenue targets—a successful micro-SaaS might generate $2K-$20K MRR, which is life-changing for one person but uninteresting to VCs. Micro-SaaS products typically solve one problem exceptionally well for a specific audience. Examples: a Shopify app that handles one type of discount, a Chrome extension for a specific workflow, a Stripe integration for a niche use case. The narrowness is the moat—large companies don't bother competing, and customers value deep specialization over feature bloat. The economics are compelling: low development cost (especially with modern frameworks and APIs), high margins once built, recurring revenue, and the ability for a single person to support it part-time. Many micro-SaaS founders run multiple products simultaneously or 'acquire' them from other founders through marketplaces like Acquire.com. The rise of AI coding tools has accelerated micro-SaaS proliferation—what used to require a developer team can now be built in days by a non-technical founder with the right tools. This has increased competition but also expanded the total market of niches being served.

• 1Chrome extension for LinkedIn outreach automation built by one developer generates $6K MRR
• 2Micro-SaaS acquired for $80K generating $2K/month—22x MRR acquisition multiple