Last week I made a venture capital investment in a company I had never heard of until a few days before. I don’t have a massive venture fund and I didn’t invest a large sum of money. I joined with many other investors in a private security offering through MicroVentures.
MicroVentures is a new concept in peer to peer investing. It is a cross between traditional p2p investing (such as Lending Club and Prosper) and venture capital. Here you are not providing loans; you are investing capital into a business. There is no repayment plan; you own stock in the company. The only real exit plan is a sale of the company some time down the track, hopefully for a large multiple return.
The minimum investment of $2,000 is much higher than other p2p investments and you need to be approved as an investor in order to participate. But if you meet their criteria and are interested in being an angel investor you can get started for a fraction of what you would need to invest in an angel fund.
Angel Investing Made Easy
After selling my last business in 2008 I had toyed with the idea of becoming an angel investor. I love the excitement of a startup business but the amount of time and money needed to become a successful angel investor was too much for my taste. MicroVentures solves both the time and money piece for me. With low minimum investments as well as their strict due diligence before taking on a company, MicroVentures makes the entire process easier. While it would be foolish to not perform some due diligence of your own there is some comfort in the fact that MicroVentures has already done a great deal of the legwork. [Read more…]