| Micro venture capital financing and super-angel funds, | | | | launch their services or products cheaper and faster. |
| are meant for small projects, that cannot attract | | | | They can also use cheaper marketing strategies, |
| traditional venture capitalists. For entrepreneurs it | | | | such as social media and blogs, to promote and sell. |
| means having more approachable sources of capital, | | | | This is another reason why small companies do not |
| after they have used their own savings, as well as | | | | require large amounts of outside financing. |
| money from family and friends. Smaller amounts of | | | | Whether a small company, with a small amount of |
| seed money are put by these investors into | | | | capital, is going to succeed or fail, it will be cheaper |
| early-stage startups, such as internet software | | | | and faster and this scenario, with an accelerated |
| companies. This Micro-VC trend is believed to be | | | | pace, is preferred by VCs to long and expensive |
| ascending in the next years, especially in the broad | | | | failures. Whe could talk about a so-called time |
| web applications and consumer internet field. Here are | | | | compression, that is, shorter time until the product or |
| some factors that contribute to more entrepreneurs | | | | service is on the market, then a faster revenue and |
| appealing to micro funds. | | | | exit and micro-VC investors can thus back more |
| It has become more and more difficult for business | | | | different companies, with minimal risk. This strategy |
| start-ups to attract the attention of venture | | | | could probably be considered a matter of thinking |
| capitalists and mostly unique business ideas and | | | | small when you decide start a business, but it is also |
| innovations with very high chances of long-term | | | | a matter of playing safe. |
| success are likely to get funded. What about small | | | | However, areas such as biotechnology, clean tech, |
| entrepreneurs that do not aim at the success of | | | | telecom or semiconductors still require a lot of capital |
| Google or Facebook ? They need these micro-funds, | | | | to build significant businesses. In these cases more |
| with lower and faster returns but also higher chances | | | | traditional venture capitalists, with deeper pockets |
| of success and a lower risk. | | | | and strong relationships, will be able to support the |
| Nowadays it takes less capital for a startup as the | | | | investments. In order to create firms with lasting |
| costs of developing, building and launching a certain | | | | value, that change the world with their big visio, |
| technology startup have gone down significanty. It | | | | entrepreneurs will have ro raise several million. |
| also takes less capital for sustaining a small business. | | | | Micro-VC can go the distance, as long as it has other |
| This new capital efficiency trend implies going further | | | | larger partners that are able to support the |
| with less money than in the past. Obtaining and using | | | | company's growth and development along the |
| larger funds also means justifying their sizes and | | | | following investment rounds, all for the benefit of the |
| providing higher returns for the limited partners. | | | | entrepreneur and, of course, of the final consumers. |
| More and more emerging companies can build and | | | | |