Grow VC launched an updated version last week. We have simplified many things, to make it real easy to participate in startups by funding or working for them. I believe we still have work to do to make everything easier for you, and your feedback is always welcome. There are still also regulatory restrictions to consider, so we haven’t been able to do all those things that we see are valuable. But the time will surely come.
A startup can now create a round for 1) direct investments, 2) micro investments or 3) work investments. For this blog post we will concentrate on the micro investments.
1) Direct investments are investment proposals directly from an investor to a startup and the startup can accept or reject them. The actual investment happens outside our service, we offer tools like a standard term sheet and our partners (for example law firms) can help with the investment agreement and process. In those cases the investor directly becomes an owner in the startup.
2) The micro investment is the easiest way to start your micro venture capitals career. In this model you can participate in startup companies for as little as $20. Just go to your ‘account’ and purchase the micro investment membership based on how much you want to fund startups with. For example, you can buy a plan of $20 per month. And then you can decide in which startups this capital is invested.
The Grow VC investment company makes the actual investment if the startup is able to reach an investment milestone. And we pay back our members based on the success of the investments and the member’s activities. This means that you can start to participate in a startup with as little as $20 dollars.
Our target is to make successful startups and reach a great ROI. But this $20 can bring you other value too: you can learn about startup investments, you can learn new things from startups, you support important new innovations and entrepreneurs, and it helps the whole economy.
A startup must first create its profile, then it can open a funding round. It can look for direct investments, or investments from micro investors. And it can also look for people who are ready to work for equity (make Work Investments). For the micro investment round the startup defines its valuation and the percentage of equity it offers to investors. Then the service automatically divides the round in 10 milestones. And the startup gets an investment always when it reaches a milestone.
For example, if the startup sets a $500,000 valuation and offers 12% equity to investors, the total investment is $60,000. And this is then divided into ten milestones of $6,000 each. And always when a startup has collected $6,000, the micro investments are invested into the startup. The investment process is aggregated and facilitated by Grow VC.
Of course, it’s important that you read all our terms and conditions and you can also ask us for more information. I have tried to keep things simple here.
For the startup it is now easy to publish a profile for free and startups can do it regardless of if they look for funding using the Grow VC service. This can be the place to publish a profile for investors and manage the investor relationships. And those who are interested to invest and support startups, we offer an easy solution to buy a micro investment membership and decide how to invest that money into a startup. Grow VC does not take any fee’s from the micro investments and we take care of the actual investment process.
Your feedback and development ideas are welcome. We want to work together with you to make the funding market more effective, produce more successful startups and happy investors.
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This entry was posted on Monday, July 18th, 2011 at 11:50 am and is filed under Business Education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.