We caught up with Upliift Co-CEO Michael Hammerström to talk through his background, the difference Upliift makes to the European software businesses it invests in, and its unique approach to working with founders and their teams.

Tell us about your background?

Though my name is German, I spent my early years in the former Soviet Union.  I moved to Germany with my family as refugees shortly after the Berlin Wall came down.  Our life was quite hard, and it instilled a strong work ethic in me.  I later gained degrees in economics and mathematical finance and began my career in investment banking.

During that time, I got to know lots of very interesting and clever founders – including many who had started software firms that looked like they could become very successful over time.  Instead of just being on the advisory side, I wanted to join a team that would invest in these businesses and help them grow.  So, I joined a specialist software investor in the early 2010s.

What makes Upliift unique, in your view?

I started Upliift with Alex Myers in 2022 as we felt we could offer software businesses and founders a fresh alternative to classic European and US investors and investment models.

We focus on small software companies with strong positions in niche markets, led by founders who are passionate about what they do.  We make investments in these businesses, helping them grow, with no intention of selling them on.

There are other investment firms with similarly long horizons, but they typically look to acquire the business outright and impose their way of doing things.  We’re far more collaborative.  If founders want to stay involved, and only sell part of their stake, we’re happy to support that as we believe it delivers far stronger long-term growth.

Our particular focus seems to be paying off –Upliift’s revenues now exceed €50 million, and we plan to double our business within the next year to 18 months.

What does your role at Upliift involve?

I lead our M&A efforts: “talent spotting” great European software businesses we could support, building relationships with their founders, and negotiating acquisition arrangements which work for us and for them.

We aren’t simply looking for safe places for our investors’ money.  We look to work with leaders who have built strong foundations and have the ambition to grow further.  We then bring knowhow, networks of experts, and, yes, capital, to help them realise this potential.

We find that most CEOs or founders of high-quality businesses aren’t looking to sell and exit their business altogether.  They’re committed to it for the long term and want to remain involved.  We offer flexible deal terms which enable them to do just that – while taking some money off the table.

What’s exciting about the European software landscape?

Our excitement comes from the sheer untapped potential of so many European software businesses.  There are some amazing companies out there, with great products their customers love.

If you look beyond the titans of European software, there are thousands of small and mid-size businesses dotted across the continent. Many of them develop very specific products in niche, regulated markets like financial services, agriculture, and healthcare.  They know these markets inside-out, are customer-centric and very good at building their businesses in a very capital-efficient manner.

The key challenge founders and leaders face is that Europe’s software market is highly fragmented.  There isn’t the same clustering of businesses and minds you find in the US.  Companies find it hard to broaden their total addressable market (TAM), with internationalisation in Europe made harder due to bureaucracy and different legislations.  But with Upliift providing our founders not only investment capital but guidance, support and connections our businesses can expand both domestically and internationally.  That’s our core mission at Upliift.

Our aim is to build a unified European portfolio of best-in-class software businesses.

Why should European software founders sell their business to Upliift?

One key reason is that we’re software people through and through.  We aren’t solely focused on the financial aspects – we love helping European software businesses to grow.

You’ll see this in how we engage with software founders, our approach to meetings – even how we dress!  We talk to them in their own language about their vision, their goals, their people, and their customers.  We show them how we could help their business achieve the next level of growth.  And they find that very refreshing.

Another reason is the flexibility we can offer.  Many conventional software investors expect founders or CEOs to leave the moment the deal is done.  But that can have a terrible impact on morale, employee turnover, and customer retention.  So, we offer founders flexible deal terms, with the possibility of retaining a minority stake while continuing to be involved in the business.  This enables them to play a role in its evolution and share in its success.

In fact, the founders of every business we’ve acquired are still very much involved today.

How would you describe the software founders and CEOs Upliift works with?

Our founders are committed and ambitious.  For the founders we’ve worked with over the past year, selling to Upliift hasn’t been an exit ramp, but a stepping-stone to the next stage in their careers.

They know they have a strong business and want to take it to the next level.  However, they also recognise they don’t have the experience, resources, or capital to get there themselves.  That’s where Upliift comes in.

Of course, if a founder wanted to exit the business entirely, we could also help with that.  But we find many founders are genuinely curious about what the future might hold with Upliift and want to be part of the journey.  I find that very inspiring. It’s also good for customers and employees, who find the continuity reassuring.