Sep 12, 2023 · 26m · startup-acquisition-stories

Startup Acquisition Stories with Alan Li Co-founder of Moxa

Alan Li · 18m spoken Andrew Gazdecki · 5m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of Startup Acquisition Stories, host Andrew Gazdecki interviews Moxa co-founder Alan Li about building an acupressure mobile app, executing an all-cash exit on Acquire.com, and transitioning into a micro-acquirer of software businesses.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Andrew holds 23.3% of the talking time here. How this is scored →

Andrew as informed peer 4.4 Guest teaching 2.0 Guest disagreement 0.0 Andrew pushing back 0.0
05100:0010:0020:000:24–2:30 · Andrew as informed peer 2/10 Alan Li's Background in Finance and Podcasting The conversation opens with warm, standard introductory rapport. Alan outlines his transition from investment banking and podcasting to startups while Andrew listens and responds encouragingly.2:30–6:04 · Andrew as informed peer 2/10 The Origin and Concept of Moxa Andrew admits having no personal experience with acupuncture, prompting Alan to clearly explain acupoints, acupressure mechanics, and his family background in traditional Chinese medicine.6:04–8:28 · Andrew as informed peer 4/10 Identifying Product-Market Fit and Usage Retention Alan articulates the importance of usage retention as the key leading indicator for financial retention in mobile apps, while Andrew validates the insight with founder-focused commentary.8:28–12:45 · Andrew as informed peer 5/10 Organic Growth and Education Through TikTok Alan breaks down unit economics, high consumer education costs, and shifting target markets from the US to Asia. Andrew extends this point by citing the business maxim about consumer habit change.12:45–16:49 · Andrew as informed peer 6/10 Preparing Documentation and Due Diligence Materials Alan details his finance-led approach to prepping data rooms and choosing clean all-cash offers. Andrew demonstrates marketplace expertise by affirming how preparation directly affects close rates.16:49–22:00 · Andrew as informed peer 7/10 Finding Value in Due Diligence as a Reflective Process Alan describes M&A diligence as reflective and gives advice on creating competitive urgency. Andrew actively expands on this with structured M&A insights regarding deal schedules and buyer psychology.22:00–25:05 · Andrew as informed peer 5/10 Transitioning from Startup Founder to Micro-Acquirer Alan reveals his plan to buy established software businesses, and Andrew shares high-level marketplace observations about the common trend of successful sellers transitioning into buyers.0:24–2:30 · Guest teaching 1/10 Alan Li's Background in Finance and Podcasting The conversation opens with warm, standard introductory rapport. Alan outlines his transition from investment banking and podcasting to startups while Andrew listens and responds encouragingly.2:30–6:04 · Guest teaching 3/10 The Origin and Concept of Moxa Andrew admits having no personal experience with acupuncture, prompting Alan to clearly explain acupoints, acupressure mechanics, and his family background in traditional Chinese medicine.6:04–8:28 · Guest teaching 2/10 Identifying Product-Market Fit and Usage Retention Alan articulates the importance of usage retention as the key leading indicator for financial retention in mobile apps, while Andrew validates the insight with founder-focused commentary.8:28–12:45 · Guest teaching 3/10 Organic Growth and Education Through TikTok Alan breaks down unit economics, high consumer education costs, and shifting target markets from the US to Asia. Andrew extends this point by citing the business maxim about consumer habit change.12:45–16:49 · Guest teaching 2/10 Preparing Documentation and Due Diligence Materials Alan details his finance-led approach to prepping data rooms and choosing clean all-cash offers. Andrew demonstrates marketplace expertise by affirming how preparation directly affects close rates.16:49–22:00 · Guest teaching 2/10 Finding Value in Due Diligence as a Reflective Process Alan describes M&A diligence as reflective and gives advice on creating competitive urgency. Andrew actively expands on this with structured M&A insights regarding deal schedules and buyer psychology.22:00–25:05 · Guest teaching 1/10 Transitioning from Startup Founder to Micro-Acquirer Alan reveals his plan to buy established software businesses, and Andrew shares high-level marketplace observations about the common trend of successful sellers transitioning into buyers.0:24–2:30 · Guest disagreement 0/10 Alan Li's Background in Finance and Podcasting The conversation opens with warm, standard introductory rapport. Alan outlines his transition from investment banking and podcasting to startups while Andrew listens and responds encouragingly.2:30–6:04 · Guest disagreement 0/10 The Origin and Concept of Moxa Andrew admits having no personal experience with acupuncture, prompting Alan to clearly explain acupoints, acupressure mechanics, and his family background in traditional Chinese medicine.6:04–8:28 · Guest disagreement 0/10 Identifying Product-Market Fit and Usage Retention Alan articulates the importance of usage retention as the key leading indicator for financial retention in mobile apps, while Andrew validates the insight with founder-focused commentary.8:28–12:45 · Guest disagreement 0/10 Organic Growth and Education Through TikTok Alan breaks down unit economics, high consumer education costs, and shifting target markets from the US to Asia. Andrew extends this point by citing the business maxim about consumer habit change.12:45–16:49 · Guest disagreement 0/10 Preparing Documentation and Due Diligence Materials Alan details his finance-led approach to prepping data rooms and choosing clean all-cash offers. Andrew demonstrates marketplace expertise by affirming how preparation directly affects close rates.16:49–22:00 · Guest disagreement 0/10 Finding Value in Due Diligence as a Reflective Process Alan describes M&A diligence as reflective and gives advice on creating competitive urgency. Andrew actively expands on this with structured M&A insights regarding deal schedules and buyer psychology.22:00–25:05 · Guest disagreement 0/10 Transitioning from Startup Founder to Micro-Acquirer Alan reveals his plan to buy established software businesses, and Andrew shares high-level marketplace observations about the common trend of successful sellers transitioning into buyers.0:24–2:30 · Andrew pushing back 0/10 Alan Li's Background in Finance and Podcasting The conversation opens with warm, standard introductory rapport. Alan outlines his transition from investment banking and podcasting to startups while Andrew listens and responds encouragingly.2:30–6:04 · Andrew pushing back 0/10 The Origin and Concept of Moxa Andrew admits having no personal experience with acupuncture, prompting Alan to clearly explain acupoints, acupressure mechanics, and his family background in traditional Chinese medicine.6:04–8:28 · Andrew pushing back 0/10 Identifying Product-Market Fit and Usage Retention Alan articulates the importance of usage retention as the key leading indicator for financial retention in mobile apps, while Andrew validates the insight with founder-focused commentary.8:28–12:45 · Andrew pushing back 0/10 Organic Growth and Education Through TikTok Alan breaks down unit economics, high consumer education costs, and shifting target markets from the US to Asia. Andrew extends this point by citing the business maxim about consumer habit change.12:45–16:49 · Andrew pushing back 0/10 Preparing Documentation and Due Diligence Materials Alan details his finance-led approach to prepping data rooms and choosing clean all-cash offers. Andrew demonstrates marketplace expertise by affirming how preparation directly affects close rates.16:49–22:00 · Andrew pushing back 0/10 Finding Value in Due Diligence as a Reflective Process Alan describes M&A diligence as reflective and gives advice on creating competitive urgency. Andrew actively expands on this with structured M&A insights regarding deal schedules and buyer psychology.22:00–25:05 · Andrew pushing back 0/10 Transitioning from Startup Founder to Micro-Acquirer Alan reveals his plan to buy established software businesses, and Andrew shares high-level marketplace observations about the common trend of successful sellers transitioning into buyers.

speaking balance: gold is Andrew, purple is the guest (3 minute bins)

0:00 · Andrew 17.1% · guest 82.9%0:00 · Andrew 17.1% · guest 82.9%3:00 · Andrew 17.4% · guest 82.6%3:00 · Andrew 17.4% · guest 82.6%6:00 · Andrew 20.3% · guest 79.7%6:00 · Andrew 20.3% · guest 79.7%9:00 · Andrew 7.2% · guest 92.8%9:00 · Andrew 7.2% · guest 92.8%12:00 · Andrew 38.9% · guest 61.1%12:00 · Andrew 38.9% · guest 61.1%15:00 · Andrew 14% · guest 86%15:00 · Andrew 14% · guest 86%18:00 · Andrew 18.6% · guest 81.4%18:00 · Andrew 18.6% · guest 81.4%21:00 · Andrew 48.8% · guest 51.2%21:00 · Andrew 48.8% · guest 51.2%24:00 · Andrew 29.4% · guest 70.6%24:00 · Andrew 29.4% · guest 70.6%
Sharpest disagreement ▶ 11:10 Contrasting US consumer habits with wellness alternatives

In an otherwise completely collaborative interview, Alan firmly rejects the premise that American consumers naturally gravitate to preventative health, noting their strong preference for instant pharmaceutical fixes.

Hardest push from Andrew ▶ 21:15 Insisting on seller commitment and deal momentum

Andrew strongly reinforces the danger of founder hesitation, warning that uncommitted sellers cause buyers to walk away and kill M&A transactions.

Biggest teaching moment ▶ 3:24 Educating the host on acupressure and trigger points

After Andrew admits to never trying acupuncture, Alan clearly breaks down how stimulating acupoints provides non-invasive relief without needles.

Andrew holds their own ▶ 20:59 Framing disciplined M&A deal schedules

Andrew demonstrates his deep domain knowledge by connecting Alan's tips to formal stage-gate acquisition processes and buyer risk management.

the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
Alan Li's Background in Finance and Podcasting 2100 The conversation opens with warm, standard introductory rapport. Alan outlines his transition from investment banking and podcasting to startups while Andrew listens and responds encouragingly.
The Origin and Concept of Moxa 2300 Andrew admits having no personal experience with acupuncture, prompting Alan to clearly explain acupoints, acupressure mechanics, and his family background in traditional Chinese medicine.
Identifying Product-Market Fit and Usage Retention 4200 Alan articulates the importance of usage retention as the key leading indicator for financial retention in mobile apps, while Andrew validates the insight with founder-focused commentary.
Organic Growth and Education Through TikTok 5300 Alan breaks down unit economics, high consumer education costs, and shifting target markets from the US to Asia. Andrew extends this point by citing the business maxim about consumer habit change.
Preparing Documentation and Due Diligence Materials 6200 Alan details his finance-led approach to prepping data rooms and choosing clean all-cash offers. Andrew demonstrates marketplace expertise by affirming how preparation directly affects close rates.
Finding Value in Due Diligence as a Reflective Process 7200 Alan describes M&A diligence as reflective and gives advice on creating competitive urgency. Andrew actively expands on this with structured M&A insights regarding deal schedules and buyer psychology.
Transitioning from Startup Founder to Micro-Acquirer 5100 Alan reveals his plan to buy established software businesses, and Andrew shares high-level marketplace observations about the common trend of successful sellers transitioning into buyers.

Statements from this episode (6)

Assertion Not checkable as stated
Alan Li: Moxa Acquired Initial Users Through Organic Educational TikTok Videos
“Yeah the first ones mostly were through organic social so I had never used TikTok. My partners had never used it either until we started Moxa, but, We had heard that, you know, TikTok was a great way to showcase and also educate people on interesting topics. I…”
Alan Li Sep 12, 2023 ▶ 8:36
Disclosure
Alan Li: Moxa struggled to achieve positive LTV-to-CAC with paid ads
“What we realized was it was really tough to have a positive LTV to CAC on peer paid advertising.”
Alan Li Sep 12, 2023 ▶ 10:21
Opinion
Alan Li: Asian Markets Were Better Suited For Moxa Than the US
“We realized the Asia market was actually a little bit more primed and better suited for a product like ours.”
Alan Li Sep 12, 2023 ▶ 11:40
Disclosure
Li: Moxa received 30 to 40 NDAs on Acquire.com
“So I don't remember exactly how many NDAs we got, but at least a few dozen, I'd say probably in the thirty-ish, 30 to forty-ish range and, you know, had conversations with about maybe 20% of them afterwards”
Alan Li Sep 12, 2023 ▶ 14:34
Disclosure
Li: Moxa chose an all-cash Acquire.com offer over stock and earnouts
“We decided to go with the buyer on acquired because they were able to make an all cash offer. The other buyer wanted to do sort of a mix of stock and earn outs which just made it a little bit more messy.”
Alan Li Sep 12, 2023 ▶ 15:20
Insight
Alan Li: Acquisition Due Diligence Can Be Reflective and Therapeutic for Founders
“I actually enjoyed sort of the diligence process, which might seem a little masochistic to other people, but it just goes to show how much work we had done over the last few years and sort of the knowledge and the know how and sort of explaining and sharing th…”
Alan Li Sep 12, 2023 ▶ 17:04
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