Stats
- Number of Funds Managed: 2 (including Fund 8, previously involved in Fund 6)
- Specialization: SaaS and software infrastructure
- Successful Acquisitions: Multiple, with initial acquisitions proving successful and laying the foundation for a focused investment strategy.
“Transitioning from a traditional corporate career to managing my own acquisitions was a natural progression for me. After decades in software development and engineering across various multinational corporations, I realized that real growth and satisfaction come from directly applying my expertise to manage and expand digital assets. At WebStreet, we’re not just investing money. We’re strategically investing in technologies that will stand the test of time, like SaaS infrastructure that supports the ever-evolving tech landscape. This isn’t just business; it’s about pioneering a path where technology meets investment to create sustainable, scalable growth.”
– Michael Frew, Portfolio Manager at WebStreet
Background
Finding the right person to manage an intricate portfolio of online businesses can be as challenging as spotting a rare gem in an extensive mine. Michael Frew, Founder of Dev Driven Acquisitions, is that rare find. With his robust software development background and proven strategic acquisitions track record, he leverages his extensive experience to bridge the gap between traditional investment strategies and digital asset management for WebStreet’s investors.
“Years of working in software development across the globe taught me the importance of adaptability and strategic foresight in technology. What drove me to make the leap into managing digital assets was the potential I saw in applying traditional business acumen to the digital world, where technology not only supports but drives business growth.”
Michael began his career in an era dominated by traditional software development but quickly recognized the potential of SaaS and digital infrastructure. The shift from a stable corporate job to the world of digital acquisitions was driven by a desire to have more control and to implement his own visions without the constraints of corporate structures.
His initial foray into managing digital assets was met with immediate success, further fueling his passion for this industry. This success validated his decision and set the stage for his future endeavors.
“Fortunately for me, I was successful right out of the gate with the first three acquisitions. I realized this was a career path that I really enjoyed, and it could just be so lucrative and a great way to deploy your money and your time.”
Business Philosophy and Operational Strategy
Michael’s approach to managing online businesses at WebStreet is deeply influenced by his extensive background in software engineering and his entrepreneurial experiences. As a result, his business philosophy is centered around:
- Emphasizing Direct Customer Engagement: Understanding customer needs and maintaining a direct line of communication are paramount in Michael’s strategy. He believes building customer relationships can transform the product development trajectory and help align it more closely with market demands. This approach not only builds trust but also provides immediate feedback, which is crucial for quick adaptations in a fast-paced market.
- Leveraging SaaS Businesses: In Michael’s view, the stability and scalability of SaaS makes it an ideal focus area for his investment strategy. He targets software infrastructure due to its fundamental role in supporting various technologies, regardless of market trends. In Michael’s view, the stability and scalability of SaaS make it an ideal focus area for his investment strategy. He targets software infrastructure due to its fundamental role in supporting various technologies, regardless of market trends.
- Operational Efficiency: A crucial component of Michael’s strategy is operational efficiency, particularly in how new acquisitions are integrated and managed. He prioritizes acquisitions that can scale without significant staff increases, maximizing profit margins for WebStreet’s investors. This approach not only streamlines operations but also enhances the potential for exponential growth without proportional increases in overhead costs.
- Strategic Acquisition: Michael’s methodical approach to acquisitions is tailored to ensure each asset’s long-term viability and alignment with WebStreet’s broader goals. He looks for businesses with stable, manageable growth rather than those displaying volatile ‘hockey stick’ growth patterns, which can be unsustainable. He also prefers businesses that demonstrate proven product-market fit in stable markets, ensuring that investments are not just safe but poised for steady growth.
“Typically, what I’m looking for are businesses that are making net income around 500,000, up to a million dollars in listings in around that range.”
His Partnership With WebStreet
Michael’s relationship with WebStreet is defined by mutual respect, trust, and a shared vision for the acquired online businesses’ success. His involvement in previous funds, such as Fund 6, laid a solid foundation for his role in Fund 8. WebStreet investors familiar with his work know that his strategic decisions are deeply informed by his experiences and keen insight into the tech sector’s future.
“Being a part of Fund 6 was about understanding the nuances of portfolio management in the digital space. With Fund 8, it’s about leveraging that understanding to optimize our strategies and drive substantial growth.”
His decision to continue partnering with WebStreet for multiple funds is a testament to the positive and productive partnership WebStreet has with experienced portfolio managers such as Michael. But all this was only possible through a series of steps:
1. Building Trust and Gaining Autonomy
Michael’s journey with WebStreet began with rigorous evaluations, through which he demonstrated his expertise and strategic acumen. This initial vetting process built a strong foundation of trust between him and WebStreet, proving his capabilities and alignment with the company’s goals.
“When you look at the process to even get to the spot that I’m in now, we did over a year of questions and interviews, had me do multiple different projects to show that I knew what I was talking about.”
The autonomy he has been granted in managing the funds is a crucial aspect of his relationship with WebStreet. WebStreet remains in contact with him, receiving updates on the performance of the acquired online businesses and providing support when needed.
This level of trust and autonomy has been instrumental in allowing him to implement strategies effectively without undue interference, which ultimately results in a more valuable SaaS business upon its sale.
2. Provision of a Supportive and Collaborative Environment
WebStreet’s support goes beyond just financial investment to its portfolio managers. To further ensure their success—which is ultimately the success of the investor—WebStreet extends into strategic resources, allowing Michael to leverage the company’s broader capabilities to enhance fund performance.
Such a supportive environment enables portfolio managers such as Michael to focus on acquisition and management without being bogged down by operational constraints.
The result of all this? With a solid track record behind him and a clear understanding of the evolving digital landscape, Michael is poised to leverage his deep insights into software and infrastructure to steer Fund 8 toward significant growth.
Conclusion
For accredited investors seeking to invest in online businesses, Michael Frew’s journey with WebStreet exemplifies a masterful blend of strategic partnership, operational excellence, and visionary leadership in the realm of digital asset management.
Potential investors considering joining WebStreet should consider Michael Frew one of the many professional and highly experienced portfolio managers working with WebStreet in its Funds. Their track record and strategic approach offer a compelling case and promise excellent returns and asset growth in value. As WebStreet looks to expand its investor base, Michael’s role as a portfolio manager is a beacon of trust and excellence in an otherwise complex investment landscape.
“This isn’t just business; it’s about pioneering a path where technology meets investment to create sustainable, scalable growth, and we’re trying to find the right businesses for investors.”