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Rate and Review Equity Funding Platforms

Rate Platform:
Investor Cost - Fees:

5% + 10% Carried interest

Minimum Investment:
$100.00
Broker Dealer:

MicroVenture Marketplace

Investing Portal Details:

A full service online Equity Crowdfunding platform for early stage venture investments open to the public.

Offering connections, research, deal flow, education, open access, ease of use, and diversification. They offer both primary and secondary investment opportunities through special purpose vehicles or directly into issuers, as well as opportunities under Regulation CrowdFunding. They are one of the few that operate their own broker-dealer registered by the Financial Industry Regulatory Authority (FINRA)

Stats

The site as of April 2019 states, "Investors like you have already invested over $100M through MicroVentures." There are many nuances to the numbers platforms are using to market and showcase total amount invested which we touch on in an article we recently wrote leveraging several data sources.

Company Vetting - Save you Time

The average amount of time they state they will spend assessing company's applications is 6 weeks.

Investor Fee Details

In January of 2019 Microventures dropped their fee for non-accredited investors and regulation crowdfunding offerings to $0 for both investors and entrepreneurs according to this press release. Fees for accredited offerings will remain.

Neminem shared some additional fees that may pop up via Reddit with profit-share, "I have actually gotten paid - first payment was last September, I've gotten paid quarterly since, I'm up to about $200 of the $750 they will eventually pay me (from my $500 investment). The thing is, if I pull out the money each quarter like I would definitely do otherwise, they're going to charge me a $1 BS "distribution fee" on top of the initial investment fee." He goes on to state, "so that's only $4 a year, but still, if you're talking fairly small numbers ($40-50 a distribution), that's nontrivial, percentage-wise, and was completely not mentioned up front. Other than that, though. (It was a dollar initially, then it went up to $2, and it's stayed there so far. I haven't taken the money out because I'm curious how much it will go up and how quickly, since again, it's not documented anywhere that I can tell.)" Our research focuses on equity capital types, but Microventures and others offer these revenue share opportunities. 

FunFIFacts shared their experience, in the same Reddit post, using the investing portal prior to the reduction of fees. His comment on the front-loaded fee to invest in a company, "if it takes off, surely you won't be worrying about the 7% fee. But you're paying a lot to get access to ultimately very high-risk investments. I would feel better about this (or at least more educated) if this site listed average returns or had any information about past performance, just to get a sense for how this asset class performs." Microventures had leveraged a sliding scale of fees which drops as one increases the amount to invest. We have observed that most platforms are continually updating fees to compete.

History

Founded in 2009 by Bill Clark and based in Austin, Texas.

In November 2016 Microventures partnered with Indiegogo to offer Title III Equity Crowdfunding investment offerings to allow for non accredited investor access as little as $100. After a few years of this partnership Indiegogo has stepped away and Microventures operates independently again. JD Alois at CrowfundInsider shares the details of why.

In 2011 Microventures gained access to sell $300,000 in pre-IPO shares of Facebook which 30 investors bought according to TechCrunch. The fund that helped provide access was created by MicroAngel Capital Partners, the Austin-based VC management company founded by MicroVentures Founder.

 

Let us know your thoughts of the platform in the rating above or share stories in the comments below.

Entrepreneur Cost:

$99 application fee, $250 due diligence fee, 5% of what you raise

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