November 16, 2015
CircleUp is a well-known fundraising platform for consumer products. The company has raised $30 million in series C funding led by Collaborative Fund. The company is working on a new technology platform which simplifies business for both investors and entrepreneurs.
The company focuses on innovative consumer products and retail brands. Specifically, they look to work with companies in the food, beverage, personal care, pet products, sporting goods, apparel, household products, retail and restaurant industries. There is no initial charge to apply to CircleUp. If approved to be listed on the site, CircleUp will generally assess a commission based on the percentage of the total amount raised. CircleUp identifies promising brands early in their lifecycles and posts profiles on their site for investors to discover, research and potentially make an investment. The company has created a robust network of established retailers and other partners to assist in the growth stage of listed companies.
The company’s ideology is to change the development of consumer products through equity crowdfunding. Companies selling consumer products are not able to raise the interest of investors like private equity firms and are in need of a scalable crowdfunding campaign. CircleUp works towards fulfilling this very need. CircleUp has established relationships with a number of private equity players as well as consumer packaged goods companies. The company has helped over 120 companies raise over $135 million.
In the past year, we have built machine learning algorithms to evaluate companies, Ryan Caldbeck, CEO and Co-founder of CircleUp, said in an interview. The company is working more towards crunching numbers to build better company profiles. COO and Co-founder Rory Eakin stated that data can be incredibly powerful to businesses in raising money. He further added that gathering data like this to understand optimal valuation and other pricing can be expensive but essential for the businesses.
CircleUp has totally raised $53 million till date. CircleUp’s earlier backers also joined the series C round, including Union Square Ventures, Canaan Partners, Maveron and Rose Park Advisors.
CircleUp is an online private company investment platform. They provide accredited investors free access to direct investments in high-growth consumer product and retail private companies that were previously difficult to identify and access. As the largest equity-based crowdfunding site, CircleUp provides not only access to interesting consumer and retail private company investments but also a wide-ranging, sophisticated investor network. Their investor base includes retail and consumer product industry experts, venture capital, private equity and other financial professionals, business leaders, angel investors and others interested in expanding their investment portfolios with private company investments.