Circeus, a London-based software consolidator, has raised over $220 million and acquired 18 companies to date, with three more deals nearing completion. The firm targets bootstrapped vertical software businesses with $2 million to $10 million in recurring revenue. It reviews approximately 1,000 companies annually, bidding on only 1.5 to 2 percent of them.
Founded in late 2021 as Shop Circle, the group rebranded this year to Circeus, with Shop Circle now serving as its commerce division. The company employs around 300 people and supports over 250,000 businesses globally. Its strategy focuses on integrating a central team of AI engineers into acquired firms to automate workflows and develop agentic product features.
The company recently secured funding from the European Bank for Reconstruction and Development despite being profitable and well-capitalized. CEO Luca Cartechini stated the investment was strategic, aiming to leverage the bank's expertise in Central and Eastern Europe. The firm intends to build a durable technology company and is considering a future IPO on Nasdaq.
Circeus operates with a model of building locally and curating centrally, reusing technical solutions across its portfolio. The firm limits itself to a maximum of 10 acquisitions per year to maintain discipline. Cartechini, a former analyst at Jefferies, co-founded the business with Gian Maria Gramondi to create a long-term compounding machine rather than a traditional fund.
