Equity crowdfunding platform CircleUp has secured $30 million in Series C funding. Collaborative Fund led the round with participation from Capital One co-founder Nigel Morris, and former CEOs and presidents of Goldman Sachs, Thomson Reuters and the Stanford Endowment. CircleUp’s other backers include Union Square Ventures, Canaan Partners, Maveron and Rose Park Advisors. According to the company, the capital infusion will be used for product development and personnel hiring.
San Francisco – November 11, 2015 – CircleUp (www.circleup.com), the leading marketplace for equity investments in private companies, today announced it has raised $30 million in Series C funding, bringing its total funding to $53 million. The round was led by Collaborative Fund, with participation from Capital One co-founder Nigel Morris, and former CEOs and presidents of Goldman Sachs, Thomson Reuters and the Stanford Endowment, joining previous investors including Union Square Ventures, Canaan Partners, Maveron and Rose Park Advisors. The capital will be used to further develop CircleUp’s product and data teams.
“We’ve seen our marketplace hit an inflection point over the past 12 months, as institutional investors see the performance of the asset class we have opened up, and increase their demand for additional early-stage, non-technology investment opportunities,” said CircleUp CEO Ryan Caldbeck. “In our Series C round, we’re thrilled to welcome investors from both Silicon Valley and Wall Street, as both the technology and finance worlds recognize our marketplace’s value. Collaborative Fund is a great partner for us not only for their expertise in marketplaces and consumer, but also because a number of their Limited Partners are joining the round and committing capital on the platform, continuing the trend of larger institutional investors joining our marketplace.”
Online marketplaces are disrupting traditional lending and investment processes across the world. CircleUp leads the category of online equity platforms, helping small businesses raise growth capital through a national network of investors. To date, more than 120 companies have raised funds totaling over $135 million with CircleUp’s help. The average company that has raised on CircleUp has grown more than 80 percent annually since funding on the site.
“CircleUp is helping reshape the financial system and create a more direct and efficient path between sources of capital and the most attractive private companies,” said Collaborative Fund founder Craig Shapiro. “We’ve looked at dozens of platforms and CircleUp stood out for the quality of its team, the remarkable and accelerating growth of the platform, and the performance of the underlying asset class. The companies on CircleUp have done very well since raising – creating a virtuous circle of more capital, more companies and more investors joining the platform.”
“CircleUp is applying the best practices of the marketplace lending model to an entirely different asset class: growth equity for small businesses,” said Nigel Morris, Managing Partner of QED Investors and co-founder of Capital One. “By leveraging data, we see the potential for greater risk-adjusted returns, drawing in more capital to benefit from the transparency, liquidity and low fees of a marketplace approach.”
CircleUp (www.circleup.com) is a marketplace for investors and non-technology entrepreneurs. Accredited investors find free access to select private investments, easy tools to identify and diligence companies and online transaction capability to make investments. For retail and consumer product entrepreneurs, CircleUp offers an efficient way to access a network of sophisticated investors as well as value added partners. For more information, visit https://circleup.com/.