MicroVentures, an Austin, Texas-based provider of online peer-to-peer crowdfunding investment services for accredited investors, plans to announce today that it has raised $150,000 in funding.
This latest round was raised by using the company’s service itself, which essentially connects entrepreneurs with backers. The funding came from several of the investors currently in the company’s network, with an average investment of just over $10,000 per participant, MicroVentures said.
Crowdfunding sites have been around for a few years. Each has heir own twist, such as helping bloggers pay their rent, filmmakers finance their movies and musicians finance production of records. Appbackr in Palo Alto, Calif., for instance, matches app developers with investors. Other platforms, such as Grow VC, Kickstarter and Profounders (not to be confused with London’s PROfounders Capital) each target the entrepreneurial community with variations on the crowdfunding model.
MicroVentures says that its model allows investors to fund startups with small commitments not typically available within traditional venture funding structure. MicroVentures says that in 2012, the peer-to-peer trend is forecast to reach $1 billion in transactions.
The company’s latest round of funding will be used to grow the platform and investor base. The company also says it aims to reduce the fundraising cycle for startups down from an average of six months to as little as a month or less.
The MicroVentures funding comes a month after the House of Representatives passed a bill to ease crowdfunding restrictions.