Why Buying a Business Beats Starting One – Gytenis Galkis (SuperHero Capital)

Most entrepreneurs dream of building something from scratch — but what if the smarter path is buying a business that already works, modernizing it, and reaping the returns? Gytenis Galkis explores how search funds and entrepreneurship through acquisition are reshaping the European venture landscape.

The conversation unpacks the concept of "founder market fit" — the idea that at pre-seed stage, investors aren't betting on a product but on whether the founder's background, network, and deep domain knowledge position them to crack a specific market. Galkis contrasts the venture model, where nine out of ten bets fail, with the emerging search fund strategy: backing talented operators to acquire profitable, under-managed businesses in sectors ranging from industrial suppliers to car rental marketplaces. He argues that Europe's succession crisis — hundreds of thousands of businesses owned by aging founders with no succession plan — presents a massive, under-explored opportunity for a new generation of entrepreneurs who may lack the capital to start from zero but have the expertise to professionalize and scale.

**Key Discussion Points:**

🎯 Founder market fit matters more than product at pre-seed — investors evaluate baggage, not promises

🚗 Search funds enable entrepreneurship through acquisition, not just startup creation — buying a "used car" can outperform building a new one

📞 CallStream is betting that telcos will integrate AI transcription and CRM automation directly into phone calls, unlocking value for small business owners

🇱🇹 Lithuania saw 8% growth in millionaires last year — the fastest rate globally — driven by a maturing startup ecosystem

🔄 Roll-up strategies in fragmented, analog industries offer outsized returns when paired with basic professionalization, not just AI

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