Meet Dev Shah: the 23-year-old micro PE enthusiast sourcing rare deals on Instagram

Disclaimer: Unless noted otherwise, views and analysis expressed here are the author's own and based on public sources. The article is intended for informational and entertainment purposes only. This is not financial advice. Please consult a professional for investment decisions.

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Last week, I had a fascinating conversation with Dev Shah - a 23-year old hustler from Bombay, India, who runs a microcap Private Equity focused investment-cum-sourcing vehicle called Pocket Fund. 

2 years ago, Dev closed his first acquisition - after 50+ rejected LOIs. This experience inspired Dev to start an M&A origination business powered by his 75,000 strong social media following.

In this article, we break down Dev’s sourcing and investment philosophies, as well as revealing his grand ambition.

We don't write much about micro PE investing. For a reason. It is inherently very risky, especially when digital assets like consumer grade SaaS and newsletters are involved. Many buyers fail to recoup their investment.

As Mushfiq Sarker, the category OG (220+ deals completed since 2008!), explained in an interview last year, “First time buyers do not properly analyse its cash flow potential because they’re under pressure to deploy”. 

Despite its short track record (<2 years), Pocket Fund is no novice. 7 deals done. 2 exited. 1 written off (so far):

However, flipping tiny SaaS and newsletters is only part of the story. Dev is building a sourcing machine for deals and talent. His end game is to build the equivalent of a “fully managed letting” offering for digital real estate investors.  

Dev’s core insight is that most microcap SaaS / media serial acquirers are better off outsourcing origination, to focus on things like investment thesis and operations. I couldn't agree more.   

In fact, I liked Dev’s story so much I invited him to next week’s Software Serial Acquirer Summit in London.

Hurry: ticket sales end Thursday midnight UK time. 

Read on to learn:

• How Dev turned a $4,000 investment into $150,000 exit

• Sourcing rare deals on Instagram and Reddit

• Dev's plan for democratising investing in microcap digital assets

Turning a $4,000 investment into a $150,000 exit

Let’s go back to early 2023 when Dev had an accident, which left him with a torn ligament and fractured ankle. The silver lining of the ensuing doomscrolling was the accidental discovery of the M&A marketplace Acquire.com. 

5 months later, Dev bought his first business. Sourcely.ai  is an AI powered google scholar used by graduate students and researchers. Dev broke down the deal in his blog, but I will summarise it for you:

• Sourcely came with $500 MRR. Dev and his partners acquired it for $4,000

• After 6 months, Sourcely’s MRR had grown 10x to $5,000

• After 15 months, the business was sold for $150,000, generating a nearly 40x ROI for Dev and his co-investors

Preceding that first deal were 750+ seller meetings, 50+ LOIs, and 2 failed APAs. Sounds like a lot of hassle? It is. The marketplaces are full of trash. There’s competition. In order to succeed, you have to be highly disciplined.   

With Sourcely sold, in late 2024 Dev turned to sourcing deals for third-party buyers. His sweet spot is <$1M ARR businesses. There are A LOT of these. The owners are hesitant about working with brokers, or listing on a marketplace like Acquire.com. 

But they sure cannot resist Dev’s social media charm. 

Sourcing rare deals on Instagram and Reddit

Today, Pocket Fund is a 15-person team based in India and Africa. It is structured into 3 functions: Marketing; Business development; and Deal flow analysis.   

Pocket Fund deal flow analysts are currently sourcing 30-50 off market deals per week. Dev believes they can scale 10x, to 500 / week. He maintains there is no conflict between proprietary and client sourcing. All of Pocket Fund’s acquisitions have been in the sub $25K revenue range. Whereas its clients predominantly look for $100K+ revenue businesses. 

Dev sees tremendous deal flow coming from Reddit (specifically, the r/microacquisitions sub Reddit) and Facebook. 

Dev’s credibility as a microcap investor is magnified by impressive social media following: 

• Newsletter - 5,500 subscribers

• X - 4,300 followers

• LinkedIn - 3,600 followers

• Instagram - 61,000 followers

Dev’s plan for democratising investing in microcap digital assets

Lately Dev has been swamped by inbounds from investors seeking exposure to “digital real estate” - steady cash flowing newsletters and micro SaaS products. For example, he sourced a $100K acquisition for a Miami based investor. He also found the GM for the acquired business. On social media. 

Dev’s next big ambition is to democratise access to micro cap investments - Moonfare style. Think about all the people who are tempted to buy a business off Acquire.com - but are mortified by the prospect of running it themselves. I definitely fall into that category!  

Also on Dev’s roadmap are:

• A multi agent framework that would replace 90% of an analysts workload 

• An AI agent that can perform actions on M&A marketplaces like acquire.com

• Building a 150,000 strong community around buying and selling businesses

Are you looking to acquire a SaaS or a newsletter?  

Meet Dev in person in London next week. Get in touch on LinkedIn or X - or by filling out this form.