Orphan Microcaps and the Next Boom

May 12, 2011 ( Investorideas.com Newswire )

Functional Inspiration Blog at MicroCap Investor

By Josh Levine

www.levinesmicrocapinvestor.com

It hasn’t been easy operating a small business for last few years. In particular, companies with less than 100 employees have struggled against a tide of obstacles from tight credit to rising costs -- all in the midst a difficult economic environment.

In the world of finance, small firms have also faced an uphill battle as alternatives to raise equity capital, practically the only avenue for funding tech-driven micros, have narrowed significantly since the technology bubble burst in early 2000.

Still, the barrier to entry for small companies becoming publicly-traded isn't very high, thanks to the broad acceptance of the reverse merger. The big difference during the past decade, however, is that sponsorship from venture capital firms and investment banks nearly vanished at the $200-million market cap threshold and below.