Investors : Frequently Asked Questions
- What is the difference between a sophisticated and an accredited investor?
MicroVentures Marketplace defines a "sophisticated investor" as an individual whose net worth does not exceed $1 million, who has investing experience, and who can make financial decisions without others' input. An "accredited investor" is defined as an individual with a net worth of more than $1 million dollars or a minimum annual income of $200,000. close
- What type of documentation will I get when I purchase shares of a business?
Upon purchase, you will receive shares of the company, and in addition gain investor access to the businesses profile page on our website, where the company will provide detailed investor information specific to the business (such as quarterly updates) if available. close
- What factors does MicroVentures Marketplace evaluate when determining if a business meets the criteria to be listed on your site?
We look at the company’s business plan, how it intends to use the funds, its profitability, the experience of the leadership team, industry, risk to investors and financials to determine whether the business is suitable for microventures platform. close
- Will there be any personal guarantees made by the business owner?
It's important to note there are no guarantees by the business owner to the investor. When you opt to invest in a company, you do so at your own risk. close
- How will you determine the value of a business, and thus the private equity shares?
To determine the business and share value, MicroVentures Marketplace will look at financials, profitability, assets and what percentage of the business is being sold. close
- How long will I be required to hold my shares?
The requirement is one year based on SEC regulations. If funding is not completed, we will return your funds. close
- When the minimum time requirement has passed, how do I sell my shares?
Microventures is currently working with several companies to develop a plan to list and sell your shares. More information on this will be made available shortly. close
- How often will I get updates on the companies in which I invest?
Although the companies are not required to provide updates at this level, we are requesting that they issue semi-annual updates to shareholders. close
- When I invest in a business by purchasing shares, does MicroVentures Marketplace take my funds immediately, or does MVM wait until the total target investment is reached?
We place the funds in escrow immediately and then hold them until the funding is over. Once the money has settled, MVM disburses it to the business. close
- If I want to invest "more than the maximum" in a particular business, may I?
If you want to invest a greater amount than the maximum allowance listed at MVM, send your request via e-mail to: help@MicroVentures.com. We will make every effort to assist you. close