Review on MicroVentures by jesus ruiz
MicroVentures, born out of the need to help small investors
After experiencing the contraction of small business lending opportunities following the 2008 financial crisis, Bill Clark creates the investment firm MicroVentures.
MicroVentures is an equity crowdfunding website that offers investments in early stage companies.
MicroVentures makes the connection between experienced investors and startups, which are in search of starting their operations in the financial market.
MicroVentures is one of the first online venture investment platforms, in its early days it offered its clients traditional and venture investments with experienced investors, but in small amounts of money and exclusively online.
Importantly, MicroVentures finances startups in a variety of industries, including technology, consumer products and services, healthcare, media and entertainment, and telecommunications.
The platform has the ability to analyze potential early-stage companies that require its investment using a variety of success criteria, such as appropriate risk, likelihood of profitability and other key factors.
There is a notable advantage to investing with MicroVentures, being a broker, you can legally sell shares of companies on your own, other competing platforms require an external intermediary to sell shares.
As for MicroVentures' participation in projects, the platform takes 5% from investors for each successful raise (plus 5% from the issuing company) and charges 10% cumulative interest.
The investment market carries risks associated with market volatility, MicroVentures takes care to minimize these risks and ensure the stability of its clients' investments.
In general, they place great emphasis on the evaluation and selection of companies to offer investments. When you first register with MicroVentures, they will schedule an initial phone call to discuss your situation and objectives.
Pros
- Offers investment opportunities to start-up projects or ventures.
- Emphasis on evaluating and selecting companies to offer investments to
- Registered broker-dealer and Title III funding portal
Cons
- Initial investments are inherently risky and offer very little liquidity.
