Micro venture capital

Hi there! Have you ever heard of the word “venture capital”? Well, let me explain to you what it is first. Venture capital is when someone or a group of people (usually very rich and savvy investors) give money to a new company that they think has a lot of potential to grow and make a lot of money in the future in exchange for ownership in that company. Think of it like your mom giving you money to start up a lemonade stand and in return, she gets a share of the profits.

Now, micro venture capital is basically the same thing but on a smaller scale. Instead of investing large amounts of money, micro venture capitalists invest in smaller amounts, usually less than $1 million, into very early-stage startups. These startups might not even have a product or service yet, they might just have an idea or a prototype.

The reason micro venture capitalists do this is because they want to find the next big thing – the next Google, Facebook or Amazon – before anyone else does. By investing early on, they hope to get a bigger return on their investment if the company becomes successful.

So, to sum it up in simpler terms, micro venture capital is when people invest a little bit of money into very new companies in hopes of making big money later on. It’s kind of like a grown-up version of betting on a sports team to win the championship, but in this case, the team is a company and the championship is the big bucks!