HappyFunCorp acquired by Canadian firm Tiny for $30 million

In the ever-changing landscape of the tech world, M&A and consolidation are major themes. HappyFunCorp, a renowned product engineering house that collaborates with tech giants like Apple, Disney, Amazon, and Twitter, is the latest company to be acquired. Canadian firm Tiny, with a current market cap of approximately $500 million, is acquiring HappyFunCorp for $30 million in a mix of shares and cash.

The acquisition will allow HappyFunCorp to continue its operations independently in Brooklyn, New York, where it was founded. In addition, it will work closely with Tiny, a company that specializes in acquiring other design and product services companies for tech and internet businesses. Some notable acquisitions in the Tiny portfolio include WeCommerce, Dribbble, and Flow.

The collaboration of these companies behind the scenes with well-known tech giants such as Amazon, Facebook/Meta, Twitter, Disney, Samsung, and Apple is crucial. HappyFunCorp and Tiny provide essential services and products that these companies require to supplement their in-house capabilities without causing distractions or excess strain.

HappyFunCorp, boasting a long list of prestigious clients since its establishment in 2009, has been bootstrapped and profitable. With revenues of $12 million in 2022, the company is set to achieve further growth this year. Co-founders Ben Schippers and Holly Zappa, along with COO Robb Chen-Ware, will continue to lead HappyFunCorp after the acquisition.

TezLab, a popular third-party Tesla application that was incubated at HappyFunCorp, will become an independent company as a result of this acquisition.

Consolidation, growth, and the future of tech companies

The acquisition of HappyFunCorp by Tiny is not only a testament to the ongoing consolidation in the technology industry, but also highlights the growing importance of companies that provide design and product services. As tech companies continue to navigate market challenges, including workforce reductions and budget cuts, they still strive for future growth. Developing new products and concepts to meet demand and create new opportunities remains a top priority.

Tiny believes that this push and pull dynamic will drive more business into its portfolio over time. The profile of companies like HappyFunCorp has significantly changed in the past decade. What was previously accomplished behind closed doors is now being celebrated and highlighted. The pendulum has swung, and these companies are now recognized for their valuable contributions.

Cost consolidation is another factor that will shape the tech industry. As companies look for more efficient ways to allocate their budgets, a « near shore » model becomes attractive. Countries like Costa Rica and other economies in Latin America offer cost-effective solutions for R&D. This shift in the market is set to continue.

The future is bright

The acquisition of HappyFunCorp by Tiny signals a new chapter for both companies. With their combined expertise and resources, they are well-positioned to navigate the ever-evolving tech landscape. As the demand for specialized design and product services continues to grow, companies like Tiny will play a more prominent role in shaping the future of the industry.