5 Ways Micro Venture Firms Support Budding Startups

It is often a startup’s dream to be funded by a big venture capital firm. However, larger venture capital firms often seek to fund startups that are further along the development cycle with a product that has proven its value within the market. But what about startups that are still early in their search for product market fit?  
 
That’s where micro venture capital firms and funding come in.  
 
For seed stage startups, micro VC funding is a great option. Micro VCs are smaller investment firms that fund seed-stage emerging growth companies. According to Early Growth Financials, the fund is typically under $50M, and invests between $25K - $500K in startup companies, unlike traditional venture capital firms that usually fund between $1M and $5M in the later stages. Micro VCs typically invest less broadly and more specifically within an industry or geography.  
 
Why are micro VC firms imperative to the startup journey? Here’s 5 ways… 
 

1. Aside from access to capital, micro VC funding has great benefits. Micro VC firms can assist startups in building capital-efficient businesses. GritDaily wrote that they can help startup companies prioritize their investments and minimize risks in the earlier stages, positioning them well for larger VC firm screenings and to generate momentum for future success. 
   

 

1. According to The Venture Alley, micro VC firms are more tolerant to unknown risks that many startup companies see in the early stages of development, or when entering a new market.  
   

 

1. Micro VC funding gives newer companies the opportunity to experience trial and error and growing pains while establishing a track record of success for consideration in later stages of funding.  
   

 

1. Partnership interests almost seem equal to the startup’s interest because quite frankly, both the firm and the company must perform well to yield success.   
   

 

1. Many micro VC leaders came from previous positions with traditional VC firms. This is a leg up for startups who partner with them as leaders have a keen eye for successfully funded businesses and how to help manage them.    
   

 
If you’re a tech startup or small organization in northeast Ohio and you’re interested in partnering with a micro venture capital firm, we can assist you. Our scalable micro venture capital model is created to support high-growth companies leveraging our industry expertise, network, and investment team. 

​Contact us today at info@valleygrowthventures.com to learn more about our investment program and how we can help grow your vision.