When Medigram, a Silicon Valley startup that makes a messaging app for medical professionals, wanted to raise money earlier this year, it enlisted the help of Microventures. The online marketplace, also based in the Valley, quickly lined up “hundreds of thousands” of dollars from about 20 individuals, says Medigram’s co-founder and chief executive officer, Michael Chiu. He credits the website, which connects investors to entrepreneurs, with making the fundraising process “a lot more streamlined” than having endless meetings with venture capitalists.
Microventures says it’s the first U.S. marketplace to use a crowdfunding model to sell equity stakes in private companies to wealthy investors.
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