Startup Uses Media and Sponsored Blog Posts to Prove Concept, Gain Investors

Bill Clark created MicroVentures Marketplace, Inc. in 2009 as a way to help startups find capital.

Based in Austin, Texas, the company acts as a middleman and facilitates deals between investors and startups in a number of industries.

Its online crowdfunding model allows investors to purchase equity stakes and access to deals around the U.S. It also gives investors the opportunity to invest smaller sums, much less than the $50,000 or so required in traditional angel and venture capital deals.

With a large pool of investors, MicroVentures would be able to accept business plans of companies looking to raise capital. Clark needed to attract that pool of investors—those willing to invest $1,000 or more in a deal, to validate his crowdfunding model.

To make matters more challenging, Clark couldn't do any marketing without first getting the approval of the Financial Industry Regulatory Authority. Those approvals took time and came with a big price tag. Clark wanted to comment on things happening immediately, and the cost was high for the startup.

The best option turned out to be to use the media and sponsored blog posts to get the word out about the company and get investors. The combination of press releases, sponsored guest posts, and pitches to the media helped Clark land nearly 600 investors in just four months, bringing MicroVentures' total investors to 1,000 in less than one year.

Read the complete case study to learn how he did it.