Investing in startups is risky. It is important for you to familiarize yourself with our process and become comfortable with risk prior to investing. We suggest reading the “Investors” section of our website to better understand our investment process and to get yourself registered with MicroVentures.
The requirement is one year based on SEC regulations. If funding is not completed, we will return your investment. The private market is very illiquid so you should be prepared to hold your investment for a longer period of time. The average exit for a startup is 7 years from inception and can often be longer.
There is currently no market for selling your investment on the secondary market. You should plan on holding your investment until the company has an exit. If there is an emergency and you need to liquidate your investment please notify us and we will do everything we can to see if there is another buyer available but we can’t guarantee that you will be able to exit.
The main difference between a primary investment offering and a secondary investment offering is how the shares (stocks) are acquired. In a primary investment offering, investors are purchasing shares (stocks) directly from the issuer. However, in a secondary investment offering, investors are purchasing shares (stocks) from sources other than the issuer (employees, former employees, or investors).
Each quarter, we ask the companies we have made primary investments in to provide us updates. If/when the company provides us with an update, we pass those along to our investors. For secondary investment opportunities, we do not have information rights and do not get quarterly updates. In an effort to keep investors up to date on current public events surrounding the company, we provide a quarterly news update.