Micro Angel Investors Are the Future of Startup Funding

How leveraging the power of small checks can make a big impact to build companies and create generational wealth

Startup funding is evolving and growing past its reliance on venture capital. Founders are finding alternatives and taking control of their businesses with the help of what I call, “micro-angel” investors…people who make small investments from $100 — $4,999.

Micro-angel investment didn’t exist until a few years ago. To understand why, here’s a short history lesson.

After the 1929 stock market crash, the Securities Act of 1933 was passed to protect investors from losing money. It ensured transparency in financial statements and restricted access to high risk investments to accredited investors.

Accredited investors were expected to be financially knowledgeable and in need of less protection given by regulatory disclosure filings. Which simply means they had to be educated and smart about investments, aware of the dangers and be ready to handle the possible losses. The belief was that people with lower incomes were safer not venturing into the uncertain waters of investing.