Tim Sullivan, CEO of MicroVentures

February 15, 2014

Overview

Founded in 2009, MicroVentures Marketplace is a platform that gives start-ups and existing small businesses access to early-stage capital investment or micro investments.

MicroVenture Marketplace is one of the financial industries first organizations which merges peer-to-peer lending with the venture capital industry. The Austin, Texas-based firm also provides an exclusive opportunity for investors: to offer funding resources to entrepreneurs and early-stage organizations that need capital to accelerate company development.

MicroVentures looks for Startups and existing businesses that need between $100,000 to $500,000 in capital. They look at all industries, with the exception of Real Estate and Oil and Gas.

Interview Notes

  • Traction ~$20 million raised across 41 transactions through its platform to-date. ~80% of these have been primary offerings; remainder secondary offerings
  • Network More than 10,000 accredited investors on the platform; includes a meaningful number of international investors
  • Business Model  10% success fee (5% from issuer; 5% from investors) + 10% carry
  • Beyond Silicon Valley Tim is optimistic about deal flow outside traditional venture hubs, where great companies at attractive valuations can be found
  • Highly Curated To-date, MicroVentures has accepted less than 1% of applications onto its platform
  • Microventures reaches out to all potential investors before accepting them onto the platform

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