MicroVentures - Shark tank for smaller players

I've always been interested in Angel Investing and helping to fund startup companies that have potential to become the next big thing. Up until recently, participation in the venture capital field has been limited to accredited investors with at least $1 million in assets and/or $200,000 per year in income. Now, thanks to the miracle of the internet, there is hope for smaller investors who want to get involved in the game of early-stage funding. A relatively new website called MicroVentures is revolutionizing the way startups raise funds by leveling the playing field of startup investing. To date the site has raised over $40 million for various startup ventures.

MicroVentures opens the door for accredited and non-accredited investors to invest in startups. Investors can get in on opportunities for as little as $1,000 per deal. Most of the available startup opportunities ask for a $5000 minimum investment, but it is possible to request a smaller amount. Most of the startups offered are in up and coming technology companies that are doing something unique in their field. All companies have been thoroughly investigated and analyzed by MicroVentures team members, but due diligence is still recommended on the part of individual investors. 

I recently made an investment in an investing fund that works a little like a mutual fund. The fund, run by MicroVentures, invests in many or all available companies funded by MV. It was a great way to diversify the investment and spread risk across multiple startups. The funding round for the fund closed at the end of last month, but they may offer additional rounds in the future.

One downside of the site is that it can sometimes take a while for a round to receive funding. So, if you make an investment at the beginning of the funding period, your money could be held up for an undetermined amount of time, until the funding round is completed. Fortunately, site staff send out warning emails to let investors know when funding rounds are getting close to funding so that investors can get in at the right moment without the opportunity costs of having to hold cash in limbo on the sidelines. Another thing to keep in mind is that this kind of investment is very speculative. Your investment buys a small piece of an actual company, but the investment is highly illiquid. To get money out, you will have to wait for a liquidity event such as a stock offering, or a buyout of the company. You should expect this to be a longer term investment of at least 3 to 5 years.

In closing, if you like kickstarter, you will love MicroVentures. MicroVentures is like kickstarter for grownups who want more than a new toy in return for their investment. Go there and check it out today! https://microventures.com/