MicroVentures has just announced that it has raised $300,000 for a fund to buy Facebook private shares on a secondary market. According to the company, ten minutes after becoming available, the investment already had raised $40,000. After two weeks the fund reached $300,000 with 30 investors in five states.
Looking to buy Facebook shares from employees and stockholders, the fund was created by an Austin-based venture capital management company called MicroAngel Capital Partners and was raised in the MicroVentures crowdfunding platform.
MicroVentures allows investors to pledge their funds to promising start-ups, thus accelerating their development. Start-ups looking to benefit from the investment platform can fill a funding application and must submit their business plan. MicroVentures will then screen the application and decide if the company is eligible to feature in the fundraising platform.
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. 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.
Bill Clark, Founder and CEO of MicroVentures