Structuring micro rounds: How founders can raise faster and more often

Fundraising doesn’t always have to be a large all-in-one marathon. Whilst it’s easy to craft a vision of grandiose raises to fuel accelerated growth, many founders are choosing to raise through smaller, faster, and more flexible ‘micro rounds’. 

These are quick funding injections designed to extend runway, test traction, or bridge the gap between bigger milestones. Whether it’s a top-up round, a bridge to a larger raise, or a syndicate-led SPV, these micro rounds have become a vital part of the modern fundraising landscape.

Let’s break down what they are, how to structure them, and why they might be right for your startup.

What is a micro round?

A micro round is a smaller-scale fundraising event, typically £350k or under, that allows founders to bring in capital from a range of investors without committing to a full seed round.

They come in a few common forms:

• Bridge rounds: Used to extend a founder’s runway before a larger raise.
• Top-up rounds: Small additions after a previous round to hit new or updated targets.
• SPVs or syndicate rounds: Investment vehicles that pool funds from multiple angels into a single line on your cap table.

These rounds are often faster to close, less admin heavy, and more flexible in valuation or structure than traditional rounds.

Why do founders use micro rounds?

• Extend runway without pressure
  If your next major round isn’t quite ready but you need to keep growing, a bridge or top-up round buys crucial time without the distraction of a full fundraising campaign.
• React quickly to opportunity
  If you have a major contract or pre-order awaiting shipment, or crucial tech to develop, a quick micro round can unlock the capital needed to seize that moment.
• Bring in strategic investors
  SPVs and syndicates allow founders to accept multiple smaller cheques from angels or advisors, which often adds credibility, connections, and mentorship alongside the funds.

How do these differ from larger rounds?

Because of their size and purpose, micro rounds tend to prioritise speed, efficiency, and simplicity, giving founders the room to progress and grow without locking in lengthy negotiations.

How can I structure a micro round?

Whilst there is no one-size-fits-all approach, the structure you choose will depend on the type of investors you have, the timing, and the way you want it to look on your cap table.

• ASA, CLN, or vSAFE: These allow investors to invest now, and can convert into equity at a future priced round. They are ideal for micro raises where you don’t want to fix valuation yet, or you need cash fast.
• SPVs and syndicates: Rather than adding 20 small investors to your cap table, you can pool them into a Special Purpose Vehicle (SPV) - a single legal entity that invests collectively.

The rise of SPVs and syndicates

One of the most effective (and increasingly popular) ways to structure a micro round is through an SPV. 

An SPV is a separate legal entity created solely to hold investments from multiple backers. Instead of having 10 or 20 angel investors appear individually on your cap table, those investors each contribute to the SPV, which then invests in your company as a single entity.

This structure is especially useful when you’re raising smaller amounts from a network of individuals. 

Why founders use SPVs:

1. Cleaner cap table
   Instead of dozens of names, you see one line item. That means less admin, fewer signatures required on future documents, and an easier time maintaining S/EIS compliance or issuing updates.
   
   
2. Streamlined investor management
   With an SPV, communications, consents, and voting are handled as one. This makes governance simpler and avoids messy coordination later when you raise your next round.
   
   
3. Faster to close
   By pooling smaller investments through a lead investor or platform, you can bring together a round quickly - often in weeks rather than months.
   
   
4. More accessible for angels
   Angels who don’t meet the minimum ticket size of your main round can still participate through an SPV. It opens up access to your raise without complicating your shareholder base.

How do micro rounds fit into a broader fundraising strategy?

Micro rounds aren’t there to replace larger rounds entirely, but they should complement them to aid growth and facilitate you reaching key goals.

They’re especially useful between milestones: post-seed but pre-Series A, or between larger institutional rounds. They help founders keep momentum while aligning the timing of key cash injection with actual business needs.

Larger funding rounds still play an important role in the growth journey for many startups. Whether you’re scaling operations, entering new markets, or hiring a full team, the greater capital requirements will exceed what a micro round can provide. 

Larger rounds also might attract bigger institutional investors who bring not only deeper pockets but also strategic support, credibility, and crucial access to broader networks.

In most cases, micro rounds act as stepping stones that help founders to build momentum, validate traction, and strengthen their position ahead of those bigger, transformational raises.

Unlimited rounds - one fixed fee with InVestd Raise

With InVestd, you can structure, manage, and complete as many funding rounds as you like for one fixed subscription fee. That means unlimited SEIS/EIS filings, unlimited investor documents, and unlimited rounds - without worrying about hidden costs or one-off fees.

So if you’ve launched a seed round, but need a top-up or bridge round to see key milestones get over the line, you won’t need to work about digging deeper to raise again. 

So whether you’re raising £50k from an angel syndicate or £5m from VCs, you can focus on what matters: growing your business..