MicroVentures

MicroVentures is one of the first venture capital investment banks to offer equity crowdfunding to the public. It connects accredited and non-accredited investors with startups raising capital. The platform offers opportunities to invest in early-stage companies across sectors like technology, healthcare, and gaming.

MicroVentures performs due diligence on companies before listing them, acting more like a VC firm than a simple open marketplace. They facilitate investments in primary offerings (new raises) and sometimes secondary sales of late-stage private companies (like Uber or Facebook before they went public). It is a legitimate, FINRA-registered broker-dealer.

Frequently Asked Questions

1. specific minimum investment?

The minimum investment is typically $100 for Regulation Crowdfunding offerings, making it accessible to most people. For accredited-only offerings (Reg D), the minimums are usually higher, often starting at $3,000 or $5,000.

2. Who can invest?

MicroVentures offers deals for both accredited and non-accredited investors. Anyone over 18 can invest in the Reg CF offerings, while wealthier individuals have access to a broader range of private placements.

3. specific fees?

MicroVentures typically charges investors a transaction fee (around 2%) or a carry (percentage of profits) depending on the specific deal structure. These fees are disclosed upfront in the offering documents.

4. Is it risky?

Yes, investing in startups is highly speculative and illiquid; you should be prepared to lose your entire investment. Returns are only realized if the company exits via an IPO or acquisition, which can take years.

5. How do I get updates?

Once you invest, MicroVentures provides a dashboard where you can track your portfolio. You will also receive periodic updates from the companies you invested in regarding their progress and financials.