Startup Sphere Weekly #35

AI girlfriend app selling for $255,000. PLUS: an automated e-commerce store making $273,000/year.

Hey it’s Vlad,

welcome back to Startup Sphere, a 5-minute weekly digest about online businesses selling for life-changing amounts of money.

Last week I included a poll asking about what deal size readers are most interested in.

The $0-$50,000 range got a lot of votes, and I realized I don’t cover companies of that size as much.

Vote in the poll below to help me get a better understanding of what you’re looking for ⤵️

What deal size in the $0-$50,000 range are you most interested in seeing?

Vote below and leave some feedback:

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Weekly Rundown

Amazon home fitness brand

Asking Price: $160,000
TTM Revenue: $273,000
TTM Profit: $60,000

The fitness niche really is one of the most profitable and evergreen markets.

The business for sale is an e-commerce brand selling home fitness products, primarily on Amazon. Something that caught my eye with this listing is that the current owner bought this business 2 years ago on Flippa. Since then he has grown the sales by almost 200%.

Although the company has no inventory and is fully dropshipped, the products they sell have the company branding on them, and the company name is a registered trademark. This allows the business to maintain credibility and trust with their customers, without having to go through the capital-intensive process of buying and storing inventory.

Another upside to this business is that the current owner is working with a marketing agency. This means the new owner would not have to focus their efforts on marketing and can shift their attention to building up the business. Alternatively, the new owner can get rid of the agency, and handle marketing themselves to increase profit margins.

AI-powered romantic companion

Asking Price: $255,000
TTM Revenue: $51,000
TTM Profit: $27,000

This listing really blew my mind. I mean, I’ve heard about these AI companion businesses, but I’ve never actually seen one.

The business for sale is an AI-powered app that lets users chat with an AI girlfriend. Looking at this, it really is crazy how AI is being used. What’s even crazier to me is that people are actually paying for this. Either way, my opinion doesn’t really matter, as long as the business is making money.

The business is currently growing through organic channels like Google Search. I imagine this is because this is one of the early players in the niche. The listing doesn’t really mention any marketing efforts, but I can imagine something like this going viral on TikTok.

The company is on sale for $255,000, which is a ridiculous 9.4x profit multiple. I think this can be a good deal at about half the price.

Candy AI, Romantic AI, and Anima are examples of similar companies.

3D render and sketch SaaS

Asking Price: $549,000
TTM Revenue: $171,000
TTM Profit: $159,000

The company for sale is JustSketchMe - a SaaS for generating 3D renders and sketches.

The business was founded 6 years ago and makes well over $100,000/year in profit. The company also has 93% profit margins, which seems impressive to me, especially for such compute-heavy software.

The listing doesn’t mention their marketing channels. From my experience, Twitter has a strong design community presence, so I imagine that would be a good marketing channel. I also think Reddit would be a strong marketing channel for this platform.

This is probably a good business opportunity for someone with knowledge of the design space and the ability to narrow in on the target audience for this platform. For me, this is just an extremely impressive software selling for a life-changing amount of money.

Cast Your Vote

Which business in today's rundown is a winner?

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Last Week’s Poll

The results are in: The platform for getting job referrals dominated last week’s poll, with 80% of the votes. The real estate training & SaaS came in a distant second place.

Startup Sphere Pro

This week Startup Sphere Pro subscribers got access to a [BUSINESS] selling for [AMOUNT] and a [BUSINESS] making [AMOUNT], plus:

✓ Unlimited access to 100+ historic listings

✓ 12+ deep dive listings every month

✓ 8+ pro exclusive listings every month

✓ Access to all listing URLs & contact info

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Micro Roundup

Newsletter for new and expecting fathers with 11,000 subscribers (link)

iOS puzzle game with 1,200 users (link)

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Till next week 🐸

— Vlad Verba
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