MicroVentures Logo MicroVentures Logo MicroVentures Logo MicroVentures Logo
Crowdfunding
Debt vs. Equity
Diversification
Early vs. Late Stage Investing
Convertible Notes
Glossary of Venture Terms

Investors like you have invested in Facebook and box through MicroVentures. Register now to learn more

Case Studies and Whitepapers

Twitter

Through MicroVentures, investors leveraged deep industry relationships and gained access to one of the most exclusive private companies, prior to its anticipated IPO.

View Twitter Case Study

What is a Convertible Note?

Entrepreneurs have two options when it comes to raising money to fund their company, debt or equity. Debt is a loan which they must pay back within an agreed upon amount of time.

View Convertible Note Whitepaper

Frequently Asked Questions

Investor Questions (7)

I’m a first time startup investor, where do I begin?

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.

Who is an accredited investor?

An accredited investor is defined under regulations set by the SEC. You can view the specific criteria here.

If I invest, for how long do I have to hold my shares for?

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.

When the minimum time requirement has passed, how do I sell my shares?

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.

What is the main difference between primary and secondary offerings

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).

How often will I get updates on the companies in which I invest in?

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.

If I want to invest “more than the maximum” in a particular opportunity, may I?

If you want to invest a greater amount than the maximum listed on the MicroVentures platform, send your request via email to: help@microventures.com. We will make every effort to assist you.