MicroVentures
{{Infobox company
| name = MicroVentures
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| founder = Bill Clark
| location_city = Austin; San Francisco
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| key_people = Tyler Randall Gray (COO)
| products =
| services = equity crowdfunding
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| homepage = {{URL|https://microventures.com/}}
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MicroVentures is an equity crowdfunding website that offers investments in early stage companies. It connects accredited investors with startups, businesses and services looking to raise funds or participate in select secondary market opportunities.{{cite web|title=New Peer to Peer Venture Capital Investing Website Launches in Austin, TX|url=http://www.prweb.com/releases/2010/09/prweb4482344.htm|archive-url=https://web.archive.org/web/20131125145410/http://www.prweb.com/releases/2010/09/prweb4482344.htm|url-status=dead|archive-date=November 25, 2013}}{{cite news|last=Calnan|first=Christopher|title=Austin entrepreneur launches online investment matchmaking|url=http://www.bizjournals.com/austin/stories/2010/04/26/tidbits4.html|publisher=Austin Business Journal}}{{cite web|last=Shah|first=Semil|title="In The Studio," MicroVentures' Tim Sullivan Crowdfunds Retail Angel Investments In Startups|date=25 April 2013 |url=https://techcrunch.com/2013/04/25/in-the-studio-microventures-tim-sullivan-crowdfunds-retail-angel-investments-in-startups/|publisher=TechCrunch}}
MicroVentures is the only major equity crowdfunding site that is a broker-dealer registered by the Financial Industry Regulatory Authority (FINRA){{cite web|title=MicroVentures' App to Match Startups and Investors|url=http://www.businessweek.com/videos/2013-02-26/microventures-app-to-match-startups-and-investors|archive-url=https://web.archive.org/web/20130306092528/http://www.businessweek.com/videos/2013-02-26/microventures-app-to-match-startups-and-investors|url-status=dead|archive-date=March 6, 2013|publisher=Business Week}}{{cite web|title=Prepare to crowdfund at Launch Festival with a MicroVentures sponsored mobile app|date=26 February 2013 |url=https://venturebeat.com/2013/02/26/prepare-to-crowdfund-at-launch-festival-with-a-microventures-sponsored-mobile-app/|publisher=Venture Beat}} and the first to take a portfolio company to a successful exit.{{cite news|last=Colao|first=J.J.|title=In The Crowdfunding Gold Rush, This Company Has A Rare Edge|url=https://www.forbes.com/sites/jjcolao/2013/06/05/in-the-crowdfunding-gold-rush-this-company-has-a-rare-edge/|work=Forbes}}{{cite web|last=Weston|first=Julien|title=MicroVentures Marketplace gains first Peer-to-Peer FINRA license|url=http://www.vcvibe.com/microventures580-marketplace-gains-first-peer-to-peer-finra-license/|publisher=VC Vibe}}{{cite web|title=MicroVentures Brings First Equity CrowdFunded Company to Exit|url=http://www.prnewswire.com/news-releases/microventures-brings-first-equity-crowdfunded-company-to-exit-230584231.html}} As of October 2013, MicroVentures had raised $20 million, spread among 45 companies{{cite web|last=Thomas|first=Myra|title=Online Platforms Connect Tech Firms & Angel Investors|url=http://news.dice.com/2013/10/23/online-platforms-connect-tech-firms-angel-investors-166/|publisher=Dice}} including Twitter, Facebook, and Yelp (before they reached the public markets).{{cite web|last=Panzarino|first=Matthew|title=Twitter Could Price IPO Well Above New $23-$25 Range, After Strong Private Market Interest|date=4 November 2013 |url=https://techcrunch.com/2013/11/04/twitter-could-price-ipo-well-above-new-23-25-range-in-line-with-strong-private-market-interest/|publisher=TechCrunch}}{{cite web|last=Wauters|first=Robin|title=MicroVentures Raises $300,000 Fund To Invest In Facebook On Secondary Markets|date=27 October 2011 |url=https://techcrunch.com/2011/10/27/microventures-raises-300000-fund-to-invest-in-facebook-on-secondary-markets/|publisher=TechCrunch}}{{cite web|last=Hawkins|first=Lori|title=Austin-based online investing firm MicroVentures continues growth, raises $150,000 for expansion|url=http://www.statesman.com/news/business/austin-based-online-investing-firm-microventures-c/nRhzx/|publisher=Statesman}}
History
=Founding=
MicroVentures was founded by Bill Clark in Austin, Texas, in 2009.{{cite web|last=Sandlund|first=Jonathan|title=MicroVentures Snapshot: Startup Crowdfunding Platform|url=http://www.thecrowdcafe.com/microventures-snapshot/|archive-url=https://web.archive.org/web/20131215211326/http://www.thecrowdcafe.com/microventures-snapshot/|url-status=usurped|archive-date=December 15, 2013|publisher=Crowd Cafe}} Prior to starting MicroVentures, Clark worked as a credit-risk manager with GMAC Inc., PayPal, and Dell Financial Services (DFS).{{cite news|last=Hay|first=Timothy|title=New Service Aims To Enable 'Peer-To-Peer' Early Investing|url=https://blogs.wsj.com/venturecapital/2010/04/07/new-service-aims-to-enable-peer-to-peer-early-investing/|work=The Wall Street Journal}} Clark decided to found the company after witnessing the contraction in small-business credit opportunities following the 2008 financial crisis.{{cite web|last=Ankeny|first=Jason|title=Venture Funding, One Dollar at a Time|url=http://www.entrepreneur.com/article/207164|publisher=Entrepreneur}} MicroVentures completed FINRA's application process in 2010.
=Growth=
In August 2012, Tim Sullivan, then president of SharesPost, an online marketplace for trading shares of private companies, joined MicroVentures as its CEO to help scale the company.{{cite news|last=Gage|first=Deborah|title=In Management Shake-Up, SharesPost Exec Departs for MicroVentures|url=https://blogs.wsj.com/venturecapital/2012/09/28/in-management-shake-up-sharespost-exec-departs-for-microventures/|publisher=Wall Street Journal}} Under Sullivan, deal volume rose to over $1 million per month by January 2013,{{cite news|last=Hoge|first=Patrick|title=Startups battle to serve new investors|url=http://www.bizjournals.com/sanfrancisco/print-edition/2013/01/18/startups-battle-to-serve-new-investors.html?page=all|publisher=San Francisco Business Times}} and by September 2013 MicroVentures had doubled in size and completed a successful round of fundraising on its own platform.
In March 2013, MicroVentures worked with the LAUNCH Festival to develop the first mobile crowdfunding app that would allow investors to show their interest in backing entrepreneurs at fundraising events.{{cite news|last=Tsukayama|first=Hayley|title=Crowdfunding, from your Smartphone|url=https://www.washingtonpost.com/business/technology/crowdfunding-from-your-smartphone/2013/02/19/9e034aa4-7ad9-11e2-82e8-61a46c2cde3d_print.html|newspaper=Washington Post}}{{cite news|last=Kolodny|first=Lora|title=MicroVentures Mobile App to Match Startups and Investors|url=https://blogs.wsj.com/venturecapital/2013/02/21/microventures-mobile-app-to-match-startups-and-investors/|publisher=Wall Street Journal}} The company plans to eventually offer real time investing in startups through mobile.
In February 2015, MicroVentures introduced a 500 Startups Fund while announcing 25,000 global investors who have deployed over $60 million to approximately 100 companies by way of the MicroVentures platform.{{cite web|title=MicroVentures Launches 500 Startups Fund. Offers Investors Access to High Profile Incubator|date=25 February 2015 |url=http://www.crowdfundinsider.com/2015/02/63330-microventures-launches-500-startups-fund-offers-investors-access-to-high-profile-incubator/|publisher=Crowdfund Insider}}
In 2017, MicroVentures moved office locations to 11601 Alterra Pkwy #100, Austin, TX 78758.{{Citation needed|date=February 2023}}
Services
=Company listing & due diligence=
MicroVentures funds startups from different industries including technology, consumer products and services, healthcare, media and entertainment, and telecommunications.{{cite news|last=Hay|first=Timothy|title=New Service Aims To Enable 'Peer-To-Peer' Early Investing|url=https://blogs.wsj.com/venturecapital/2010/04/07/new-service-aims-to-enable-peer-to-peer-early-investing/|publisher=Wall Street Journal}} MicroVentures looks at prospective early stage companies using a variety of success criteria – such as suitable risk, likelihood of profitability, and other key due diligence factors. MicroVentures accepts less than 0.5% of companies who apply for listing on the platform. If a company is selected for listing, MicroVentures then posts the results of their due diligence for investors to review.{{cite web|title=Interview with Bill Clark, MicroVenture Marketplace|url=http://www.texastechpulse.com/interview_with_bill_clark_microventure_marketplace/s-0032132.html|publisher=Texas Tech Pulse}}{{cite web|last=Renton|first=Peter|title=My First P2P Venture Capital Investment|date=24 January 2011 |url=http://www.lendacademy.com/my-first-p2p-venture-capital-investment/|publisher=Lend Academy}} The average company listed on MicroVentures raises $250,000; outliers have raised over $1 million.{{cite news|last=Kolodny|first=Lora|title=MicroVentures Mobile App to Match Startups and Investors|url=https://blogs.wsj.com/venturecapital/2013/02/21/microventures-mobile-app-to-match-startups-and-investors/|publisher=Wall Street Journal}} Microventures takes a 10% fee (5% from the issuer and 5% from investors) from each successful raise plus 10% carry. If the full amount of an offering is not raised, then all investor money is returned.
=Investors=
MicroVentures accepts both accredited investors and sophisticated non-accredited investors on its platform.{{cite web|last=Watters|first=Audrey|title=Crowdfunding Your Startup with MicroVentures|date=26 April 2011 |url=http://readwrite.com/2011/04/26/crowdfunding-your-startup-with#awesm=~onhaxjDOFwGeIw|publisher=ReadWrite}} MicroVentures speaks to every investor who signs up by phone to determine that they are accredited investors or meet suitability requirements. MicroVentures counts more than 10,000 accredited investors on the platform, including a "meaningful number" of international investors. The typical minimum investment is $5,000.
=Broker-dealer services=
Notable offerings
=Primary offerings=
MicroVentures completed funding of its first three companies in April 2011, raising a total of $150,000.{{cite web|last=Warren|first=Michele|title=MicroVentures Funds First Three Deals|url=http://www.informationweek.com/smb/ebusiness/microventures-funds-first-three-deals/229402218|publisher=InformationWeek}} The first project was Republic Project, a cloud based platform to help advertisers manage digital-media campaigns. In October 2013, Republic Project sold to Digital Generation for a total of $14.5 million. The sale represented the first liquidity event, or "exit," for investors in an equity crowdfunded company.
In April 2013, Graphicly raised $300,000 on MicroVentures.{{cite web|last=Morrill|first=Danielle|title=Graphicly Raises $300,000 Using MicroVentures P2P Funding Platform|date=30 April 2013 |url=http://www.daniellemorrill.com/2013/04/graphicly-raises-300000-using-microventures-p2p-funding-platform/}} Overall, Graphicly has raised $1 million over two separate rounds on MicroVentures.
=Secondary offerings=
In July 2011, MicroVentures raised a $500,000 fund to invest in Facebook through the purchase of private company shares on secondary markets.
In November 2011, MicroVentures raised $100,000 for private shares of Yelp at a price of $6 to $7 a share.
Beginning in February 2012 and continuing through shortly before the company's IPO, MicroVentures offered shares of Twitter on its platform. The company saw demand in excess of 300 times the number of shares available.