Nova Blog - 16 acquisitions. 150,000 clients. The Shop Circle model explained

Luca Cartechini: background and path to founding Shop Circle

Luca Cartechini grew up between the Marche region and Termoli in Molise — "the least well-known region of Italy" — in a normal family where both parents were employees, not entrepreneurs. Two things defined him early: a nerd side that discovered gaming and tech through World of Warcraft, and a social, extrovert side that came from growing up in a small city where you are out on the streets at 12 or 13 with genuine freedom.

School was a duty, treated with minimum-necessary effort. University — economics at ESCP with time in London and Paris — was a genuine passion. "I started studying for pleasure rather than obligation." It was also where he met his future co-founder Gian, and where the two parallel currents of his personality — analytical and commercial — began to converge.

Bloomberg

Internship financial data

Jefferies

Equity Research Tech & Internet

VC fund

Early-stage investor seed & Series A

Shop Circle

Co-Founder & CEO2021 → present

What does equity research teach you that M&A banking doesn't?

Luca's route through finance was deliberate in a specific way: he chose equity research over M&A advisory, and early-stage VC over private equity. Both decisions were about going deeper, not broader.

M&A banking is transactional — you work an acquisition for three months, move to the next deal, and never become an expert in any sector or company. Equity research is the opposite: you cover the same companies for years, read 400-page annual reports, build long-horizon investment theses, and develop genuine domain knowledge. "It allowed me to understand the tech and internet sector, which growth drivers matter, what investors look for — and also how to sell a thesis, which is basically what you do in fundraising later."

The VC stint was chosen over private equity for the same reason: he wanted early-stage exposure to understand what founders actually do. The reality, he admits, was humbling. "In VC you cover 15–20 companies with minority stakes. You don't have the time or the knowledge to actually help them. I was asking founders why they missed budget by 3% in year one of a startup — which is impossible to forecast accurately." What he learned was that he wanted to build, not observe. That he was better suited to being an operator than an allocator.

"I realised I enjoyed building more than supporting — especially because the support was so limited. In VC you watch brilliant people through a window. I wanted to be inside."

— Luca Cartechini, Co-Founder · Shop Circle

How Shop Circle was founded: the decision to leave banking at 28

Shop Circle was founded in April 2021 in London. The timing was conscious: both Luca and Gian were 28, unmarried, without children, with modest savings from their London careers, and with complementary skill sets — Luca bringing finance and capital markets; Gian, with a more entrepreneurial family background, bringing operational experience from Amazon.

"We were aware it was a good age to do it. From the Italian-European mental model, leaving a stable, well-paying London job can be seen as madness. The first months we took no salary, had no investment guarantees, no friends or family investing in the early stage." The peer pressure — from parents, friends, colleagues — was real. The conviction was stronger.

Shop Circle — key metrics

Apr 2021

founded, London

Dec 2021

first institutional round

~$150M

equity + debt raised

3 hubs

London · Milan · Sarajevo

Shop Circle is a technology holding company in B2B software. It acquires profitable, bootstrapped software businesses — primarily Shopify apps and developer tools — with average age of 10–11 years at acquisition. Post-acquisition it adds AI integration, go-to-market professionalisation and access to a 150,000-client distribution network.

How does the buy-and-build model work in European B2B software?

Shop Circle's founding thesis rests on a clear-eyed reading of where European tech has a structural advantage.

Silicon Valley can outspend anyone on developer talent and can launch products at a scale that is simply unavailable to European companies. But the best European operators have beaten the Valley consistently on one dimension: efficiency. Running lean, building sustainably, generating cash. Italy's three largest tech companies — TeamSystem, Zucchetti, and Banzai/Spoon — are all buy-and-build businesses. So is Visma, preparing for an IPO. The pattern isn't a coincidence.

The three levers Shop Circle adds after each acquisition are specific. First, AI integration — both in internal processes and as new product features, started 2.5 years ago before it was fashionable. Second, a professional sales and go-to-market function: most bootstrapped technical founders have built excellent products but actively avoided selling. Third, distribution: access to 150,000 existing clients across the portfolio creates immediate cross-sell opportunities.

How does AI contribute to a 30% operating margin in a software holding company?

Shop Circle began using AI tools — OpenAI APIs, Cursor for development — approximately 2.5 years ago. At that point it was genuinely early for a company of this type. Today the adoption is systemic across the business.

Where AI is creating real leverage at Shop Circle

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Developer productivity

Senior engineers using AI coding tools are significantly more productive. "A developer is much more productive, especially if they're senior." This is a core contributor to the 30% operating margin.

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Customer support at scale

With 150,000 clients generating weekly support queries, AI handles first-line responses where documentation is solid — freeing the human team for genuinely complex issues.

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Marketing & content

Content production requires significantly less time. "Not in a drastic way — we see it as complementary to people, but there is an undeniable productivity increase."

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Internal operations

HR, controlling, finance and accounting all contain repetitive tasks that AI is progressively absorbing. "We're at an early stage — there is much more to do."

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New product features

Launching AI-powered features into existing products that already have distribution is a faster path than building AI-native products from scratch — and creates immediate measurable value for established customers.

"There is still a huge advantage — a 2–3 year window — where startups can innovate and large companies will struggle to follow. It's similar to what happened 20 years ago with websites, then mobile apps. Some big companies never made that transition."

— Luca Cartechini

Why raising less venture capital in 2021 turned out to be an advantage

2021 was the most irrational capital market year in recent tech history. Softbank, Tiger Global and others were writing enormous cheques into companies at valuations that had little relationship to fundamentals. Luca watched friends and peers raise "insane amounts." Shop Circle raised around $1.5M in its first year.

At the time, he saw this as a failure — a reflection of the company's limited track record and his own inexperience as a first-time founder. What it forced, however, was structural frugality: no founder salaries, lean hiring, zero marketing waste, disciplined acquisition criteria. When 2022 and 2023 arrived and the capital markets contracted sharply, Shop Circle was already profitable and cash-generative. Many better-funded competitors were not.

"All the companies that had raised huge amounts in 2021 spent it very quickly. For us, not raising much forced us to be extremely frugal — and then when everything came down in 2022-23, we were growing." Four consecutive funding rounds at increasing valuations followed.

How to integrate an acquired software company without destroying its value

After 16 acquisitions in four years, Luca has a clear view of what determines whether a deal creates or destroys value. The short answer: the work done before signing is what determines the work done after.

Shop Circle's M&A integration framework

Due diligence on people, not just product

The product can look perfect in a spreadsheet. Expert calls with customers and competitors reveal what isn't visible in the numbers. And the people you are acquiring matter as much as the code — especially in bootstrapped companies where the founder and a small team are the institutional knowledge.

No forced integration from day one

"The M&A operations that fail are the ones that try to integrate everything from day one — the people, the culture, the technology." Have a plan, communicate it, collect information during due diligence that you'll need in the transition, and work collaboratively with the acquired company's management on specific targets.

Integrate the back-end; decide carefully on the product

Finance, HR, controlling and accounting get integrated into Shop Circle's infrastructure from the start. The product roadmap is assessed case by case — sometimes full integration, sometimes preserving independence with shared distribution. Never assume the right answer before examining the specifics.

Founders who stay are an asset, not a risk

Many acquired founders remain inside Shop Circle post-acquisition — some managing their original company as a business unit, some growing into broader group roles. The key is clarity from day one on expectations, compensation structure (including options in Shop Circle), and growth path. "We don't come in with scissors cutting everywhere."

Dedicated teams for origination, execution and value creation

The founders did the first two or three deals themselves. Beyond that, a dedicated team of seven handles origination and execution. A separate value creation team manages post-acquisition integration. The hidden cost of taking shortcuts in due diligence is finding them in your own balance sheet after closing.

How to hire for a fast-growing software company: intelligence, discipline, ambition

Shop Circle receives 500–1,000 applications per open role. With that volume, some screening automation is unavoidable. But Luca is clear that AI is not yet good enough for the parts of hiring that matter most.

His three-factor definition of talent: intelligence, discipline (hard work), and ambition. All three are required — he has seen many highly intelligent people underperform because they lacked ambition or work ethic, and many hard workers plateau because they didn't have the drive to grow exponentially. "We look for people who want to grow their career in an exponential way — that's a specific quality we screen for."

For junior hires without track records, grades and university are used as proxies — imperfect but the best available signal. For all hires, the most underused lever is references — and Luca has become much more systematic about this. "In markets like Milan and Sarajevo where everyone more or less knows everyone, references are fundamental. They let you triangulate feedback through the network — sometimes spontaneously, before you even extend an offer." The hidden cost of a bad hire isn't the salary; it's the opportunity cost of not having the right person in that role.

Extracurricular signals matter too — sport, music, associations. These reveal discipline and commitment beyond the purely professional. Nova's own selection process works similarly, and the alignment was noted during the conversation.

Frequently asked questions about Shop Circle

FAQ

What is Shop Circle?

Shop Circle is a B2B software holding company founded in London in April 2021. It acquires profitable, bootstrapped software businesses — primarily Shopify apps and developer tools — and scales them using AI integration, professional sales infrastructure, and a shared distribution network. As of 2025 it has completed 16 acquisitions, serves 150,000+ businesses, employs 300 people (80% in product and tech), and operates at 30% operating margin with approximately $150M raised.

How does the buy-and-build model work in B2B software?

A buy-and-build model acquires multiple small, profitable software companies and creates value through operational improvements rather than building from scratch. Shop Circle targets bootstrapped businesses with 10–11 years of history and no prior institutional capital, then adds three value levers: AI integration across product and processes, a professional go-to-market function, and cross-sell access to 150,000 existing clients.

How does Shop Circle use AI to reach 30% operating margins?

Shop Circle began adopting AI tools approximately 2.5 years ago. The main productivity gains come from AI coding assistance for developers, first-line customer support automation across 150,000 clients, faster content production, and automation of repetitive tasks in HR, finance and controlling. The impact is additive — increasing output per person rather than reducing headcount.

Why did raising less capital in 2021 help Shop Circle?

Shop Circle raised only ~$1.5M in its first year, far below its peers during the 2021 capital-abundance cycle. This forced structural frugality — no founder salaries, lean hiring, disciplined spending. When markets contracted in 2022–23, Shop Circle was already profitable. Many better-funded competitors were not. The company subsequently raised four rounds at increasing valuations.

What does Shop Circle look for when hiring?

Co-founder Luca Cartechini defines talent as a combination of intelligence, hard work (discipline), and ambition — all three required. Raw intelligence alone is insufficient. For junior hires, academic grades serve as proxies. For all roles, references are critical: the hidden cost of a wrong hire is not the salary paid but the opportunity cost of not having the right person in that seat. Shop Circle receives 500–1,000 applications per role but relies heavily on network referrals.

⚡ Lightning round

A failure you're grateful for?

Not raising much in 2021. At the time it felt like a failure — in hindsight it forced the frugality that kept us alive when markets turned.

Best advice you've received?

Two from my banking mentor: (1) focus on only one thing at a time — brilliant minds get lost across 10 side projects; (2) be more structured — almost anything can be reduced to 3 bullet points, and that clarity improves every communication.

Worst advice you hear too often?

The VC pressure to raise as much as possible and grow at all costs, as fast as possible. Companies are built to last 20–30–40 years, not to hit a quarterly metric so an investor can exit.

Books that changed you?

Meditations by Marcus Aurelius (what's remarkable is how relevant a 1,900-year-old text is today); The Outsiders by William Thorndike (unconventional CEOs and capital allocation — directly relevant to buy-and-build); Only the Paranoid Survive by Andy Grove (essential reading in the AI transition era).

Daily habit worth sharing?

Delegate clearly and constantly — but be extremely specific about what, to whom, and what you expect. And take the time for a real conversation: a coffee or lunch to check alignment. A Slack message that is crystal clear to you is often completely ambiguous to the person reading it.

🔑 Key takeaways

Europe's advantage is efficiency, not scale. Silicon Valley outspends you. The winning European model is building sustainable, cash-generative businesses — and the buy-and-build model is the natural expression of that edge.

Not raising enough in the bull market was the best thing that happened. Forced frugality in 2021 — no salaries, lean hiring, disciplined spending — meant Shop Circle was already profitable when markets contracted in 2022–23. Constraints create resilience.

M&A value is won or lost in due diligence, not after closing. Shortcuts taken during diligence end up on your balance sheet. The people you acquire matter as much as the product. Forced integration from day one destroys more deals than it saves.

There is a 2–3 year AI window that won't last. Large incumbents are slow to adopt. Startups that embed AI now — in product, operations, support and go-to-market — are building a structural advantage that will be much harder to replicate in 2027.

Talent = intelligence + discipline + ambition. References beat CVs. The hidden cost of a wrong hire is not the salary — it's the opportunity of not having the right person. Network referrals dramatically reduce that risk. Use them deliberately and early.

Delegate clearly and repeat yourself constantly. What is obvious to you is not obvious to your team. The CEO's job at scale is to over-communicate a small number of things — clearly, specifically, and repeatedly. Ambiguity is expensive.

Luca Cartechini

Co-Founder · Shop Circle

Born in the Marche region, raised in Termoli (Molise). Studied economics at ESCP with time in London and Paris. Career path: Bloomberg internship → equity research at Jefferies (tech & internet, London) → early-stage VC → co-founded Shop Circle in April 2021 with co-founder Gian. Shop Circle is a B2B software holding company with 16 acquisitions, 150,000 clients, 300 staff across London, Milan and Sarajevo, and approximately $150M raised. Based in London.

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16 acquisitions. 150,000 clients. The Shop Circle model explained