MicroVentures, an online peer-to-peer investment service that allows accredited investors to invest in deals that they might not see, today announced that it has raised $300,000 for a fund created to buy private shares in Facebook, on a secondary market.
“In the first ten minutes of making the investment available on the MicroVentures,, investors committed $40,000 to the fund,” said Bill Clark, founder and CEO. At the end of two weeks, the fund closed with $300,000 from investors in five states. The average investment was $10,000.
Buying shares from employees and preferred stockholders of hot Internet sites on what’s known as the secondary market has gained steam in the past six months as fund managers and retail investors try to get in on the pre-public deals.
“I always try to identify promising, high-growth tech start-ups and get in early, but there are hurdles for individual investors. The peer-to-peer network at MicroVentures opens up this process,” said David Winikoff, one of the program investors. “It lets me quickly connect with other investors who share similar goals and companies with a large upside. It’s crowdfunding done right.”
The Facebook investment fund was created by MicroAngel Capital Partners, an Austin-based venture capital management company founded by Clark. MicroAngel Capital Partners opens doors for those who have never invested in a venture fund or other alternative investment products like the Facebook fund.
“As the market continues to go through its own adjustments, VCs and angles are beginning to look more closely at start-ups courting them for funding. This crowdfunding method is a viable option for start-ups, especially those that are concerned that funding might be drying up,” said Clark. “Traditionally, it takes many months for an entrepreneur to raise money from venture capitalists or angel investors, but we help cut that time down significantly.”
About MicroVentures Marketplace
Based in Austin, TX, MicroVentures Inc.’s capital model allows investors to fund start-up opportunities not typically available outside a traditional venture capital structure. Using its online peer-to-peer investment service, MicroVentures creates additional investment opportunities for investors looking to make smaller commitments by pooling and connecting them with entrepreneurs, start-ups and small businesses looking to raise money.
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