MicroVentures Crowdfunding Review


Micro ventures is a platform which helps startups raise capital through crowdfunding. Crowd funding enables a large group of investors to invest small amounts of capital to fund a startup in exchange for equity. What does small mean? you can invest as little as one thousand to twenty thousand dollars or more in a company by allowing a larger pool of investors the ability to invest the smaller amounts. Micro ventures gives a startup access to more capital to fund their project. The services that they provide to their investors in the due diligence process helps elect the company’s they list on their site when a company comes to them through one of their channels their website traditional venture capitalists or a trusted network and they feel that the company may be a bit for some of their investors. They begin a due diligence process that includes several steps. Some of the items they look at are their financials projections, burn rate, use a fund’s, competition market size and background checks of founders and directors. Their due diligence acts as a screening process but it is not subject to the same level up regulatory scrutiny as a public company and since these companies are startups they may not be able to provide you with all the information needed to make informed investment decisions. Once the due diligence process is complete they create funding documents called a private placement memos also referred to as the PPM. The PPM will have as much of the due diligence items as possible without giving away the company secrets. After the PPM is approved by their legal team. They post the deal on the website along with the video and a funding description. Now that the deal is listed on the website it is the investors chance to get involved and after you have signed up as an investor and can access their password protected platform. You can review the PPM and associated documents and determine if the investment fits their risk profile. When you have made the decision to invest. The last step in the planning process will enable you to invest as little as one thousand or as much as twenty thousand dollars directly on the website in any deals. Amounts over 20,000 can easily be arranged securely through a bank wire by contacting micro ventures directly. As an investor you’ll want to know where your money goes. In fact it’s a very important question. Their investment is transferred directly to secure bank escrow account and sits there until the deal is completely funded. Upon completion the funds will be given to the startup while each investor receives a site subscription agreement as legal proof of the transaction If the company is not funded for any reason during the funding period stated in the PPM. All investors will be refunded 100 percent of their money with no fees assessed. Remember startup investments are speculative and only you can determine if the investment is right for your portfolio.