Angel Investing Brings Money to Small Communities

Chicago, IL (Vocus) October 1, 2010

Currently in the U.S., angel investments contribute over 93 percent of all seed funding under $ 250,000 for small businesses, according to recent research. But this wasnt always the case.

Ten years ago, if a start-up in small town Missouri or Montana was looking for capital, their resources were limited. Most big money venture capitalists lived in California, New York or Boston, and tapping into those faraway funds was a lot harder if you didnt live in on the coasts and didnt access to industry power players. Big-time venture capitalists were rarely willing to take a gamble on a niche idea in a market they were completely unfamiliar with.

Nowadays, its possible to find angel investors not just across the US, but all over the world. Also, investors are more interested in the potential return than where the start-up is based as communication and travel have become so convenient and cheap. Access to these business angels has also become much easier. Websites like Angel Investment Network connect angel investors with entrepreneurs to create a mutually beneficial business relationship based on each partys criteria.

On these sites, a business entrepreneur from Arizona can list his business idea and the capital he needs and then take offers from business angels in New Hampshire or Illinois, anywhere near or far. Some angels initially put up $ 2,500, some $ 250,000 - the potential is endless.

A handful of these sites even specialize in regions, like the Midwest or New England, appealing to those angel investors who do prefer to invest in their local communities. Angels who prefer to take on a mentorship role can offer guidance to their invested start up business, whereas others will scour these listings looking for the greatest financial opportunities or the chance to invest in a potential technological advancement.

With the business angel sector having grown exponentially in the scarce-lending times of the recession, this new model of start-up funding is only expected to grow, making viable business ideas a reality in even the tiniest communities.

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Peer-To-Peer Start-up Investing Service MicroVentures Secures FINRA Membership

Austin, TX (Vocus) November 10, 2010

MicroVenture Marketplace Inc., an online peer-to-peer investment service, has obtained its Financial Industry Regulatory Authority (FINRA) independent Broker/Dealer membership, becoming the first company to utilize membership for online peer-to-peer private placement investments.

This allows us to start accepting investors and companies looking for funding, said Bill Clark, MicroVentures chief executive officer. Whats different about our private financing concept is that we allow investors to invest small amounts in each deal, giving them more flexibility. At the same time, were opening up a whole new avenue of funding for entrepreneurs, startups and small businesses finding it very difficult to raise money in this harsh economic climate.

Our model allows sophisticated and accredited investors to review and participate in opportunities they might never have heard of, seen or had the means to participate in, he added.

Based in Austin, TX and founded by Clark, MicroVentures helps entrepreneurs, startups, and small businesses seeking $ 150,000 to $ 1 million find sophisticated and accredited investors, who can invest as little as $ 250 to $ 5,000 per investment, through its online service.

As principal and chief executive of MicroVentures, Clark obtained Series 7 General Securities Representative, Series 24 General Securities Principal, Series 63 Uniform Securities Agent and Series 79 Limited Representative Investment Banking licenses, all of which allow the company to offer this new way of small business funding.

How does MicroVentures work? Businesses interested in the MicroVentures funding service complete an application, submit a business plan and pay a $ 100 fee. MicroVentures then reviews the plan, using a variety of success criteria such as suitable risk, likelihood of profitability, and other key due diligence factors. Following the detailed review, which carries a $ 250 fee, suitable companies are listed on MicroVentures investment / offering platform.

Interested investors complete a questionnaire to determine if MicroVentures private offering investments are suitable for them based upon several guidelines. Once accepted, investors have the opportunity to evaluate and invest in MicroVentures exclusive list of private offerings at amounts typically smaller than those made by venture capitalists or angel investors. There is no obligation to invest and no fee required.

Contact: Bill Clark, MicroVentures, 512-461-3686 or bill.clark(at)microventures(dot)com

About MicroVenture Marketplace inc.

Based in Austin, TX, MicroVenture Marketplace Inc.s capital model allows investors to fund startup 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, startups and small businesses looking to raise money.

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