This sponsored post is produced by MicroVentures.
The new Crowdfunding laws are about to open up angel investing to almost everyone. Gone are the days where you have to risk $50,000 or more, receive a personal invitation to invest from a friend, or only see a limited number of deals from the few available in your area. The new crowdfunding laws will go into effect sometime in 2013, but what can you do to take advantage of crowdfunding right now?
MicroVentures, a securities broker dealer, has been raising money for startups online for over a year and has helped raise millions of dollars for over 15 companies by bridging the gap between startups and potential investors. They use a model similar to crowdfunding which allows you to invest smaller sums alongside others and to invest in deals stretching from Boston to Silicon Valley.
MicroVenture helps investors learn about companies they may have never heard of, and to invest smaller sums, which is virtually unheard of with traditional investing.
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The service matches companies seeking capital with investors looking to invest anywhere from $1,000 to $30,000 or more. MicroVentures helps investors with the initial due diligence process by filtering startups and then providing documents to help investors conduct their own due diligence prior to making a final investment decision.
The key to becoming a successful angel investor, of course, is to invest in the right startups. To get there, you need:
1) Good deal flow, allowing you to spot potential winners from many potential options.
2) The ability to invest in multiple deals so you gain experience.
3) A knack for spotting potentially successful companies, and more importantly, management teams and entrepreneurs that will succeed.
Getting good deal flow is often the stumbling block for the average person looking to get started in angel investing. It’s also one of the reasons Bill Clark launched MicroVentures; he wanted to begin investing, but didn’t have access to good deals.
Like others thinking about becoming angels, Clark wanted to invest smaller sums in more companies, allowing him to spread his risk and also increase his chances of picking a winner. And he wanted access to great companies outside ofAustin, his hometown.
If you’d like to join the more than 2,000 angel investors getting in on new deals via the MicroVentures platform, be sure to put “VentureBeat” in the referral code when you sign up and we will send you a $100 gift card after you make your first investment.
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