Thoughts

Andrew Miller

January 26, 2025

The Healing Journey

In my many years (26) developing businesses with, investing in and advising on, category defining and exact match brand domain names, I have seen lots of cycles and trends, as anyone who is an expert in a focused arena would. Identifying them correctly is so important. I have always had a knack for it and have been right way more than wrong, but have gotten better and better with experience. I am seeing a trend now, specifically for exact match domains, and I am working hard to understand it, which is the key to success for Hilco Digital Assets, our clients and partners, and investments. I want to preface this with, there are very good deals getting done. We are in the process of closing a major EMD sale/acquisition for a large corporate seller and buyer, and have others in late stage negotiations. However, many startups, including venture backed ones, are making offers for domains that are mission critical to their business, that are simply not going to get done and are outside the ZOPA (zone of possible agreement). My sense is this is continued reverberations from a deceptively rough 2023-2024 for the venture capital industry and thus, the companies that they invest in. I see boards more involved with decision making and purse strings tighter, with more companies from seed to Series C rounds, almost playing scared or over cautiously, than I can remember in years. I have had conversations with CEO/Founders where they draw a line in the sand on price for their exact match domain, saying it is too expensive, even when we are under $1m apart (within the ZOPA). What I try to convey is that it will be exponentially more expensive when they realize how important it is and how much it is costing them across all facets of their business and the price is much higher or, more concerning, they are ready and it is no longer there, owned by another brand using that name successfully. It is so important to look long term. We have so many real world case studies of this to share. The large, publicly traded corporations or very wealthy entrepreneurs are closing important domain transactions, as they have the resources or ability to make big picture, strategic decisions. I do believe strongly that the climate is turning favorable in 2025, and as M&A activity and IPO’s flow, more domain deals will get done in the coming months.

See you in Vegas!

I am excited to see many friends at the ICA meeting this week. It is always a great time to discuss business, catch up on personal life, and engage in discussions such as the above.

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