SOURCE: CircleUp

CircleUp

April 07, 2015 09:00 ET

CircleUp Portfolio Companies Average 90% Annual Revenue Growth

Leading Private Investing Marketplace Celebrates Third Anniversary, Releases New Performance Data

SAN FRANCISCO, CA--(Marketwired - Apr 7, 2015) - Today CircleUp, the leading online marketplace connecting entrepreneurs with capital and resources, announced that companies that have successfully raised funding on its platform have since grown their revenue an average of 90 percent each year following their raise. As CircleUp celebrates its third anniversary, a milestone 100 companies are simultaneously listed on its private equity investment platform.

According to Nielsen data, CircleUp's companies are growing about three times faster than companies that have been declined on the platform, illustrating the success of CircleUp's careful curation process, which selects less than 5 percent of companies that apply. The average CircleUp round is $1 million, and 35 percent of CircleUp portfolio companies have already gone on to raise an additional round of funding. Among those companies with a subsequent priced round, the average Internal Rate of Return is 82 percent. By comparison, technology industry IRRs have hovered in single-digit percentages for the past decade.1

"Consumer goods companies are very difficult to reach historically, despite their strong potential for returns. The success we've seen from companies that have raised with CircleUp so far is indicative of the tremendous opportunity in the space," said CircleUp CEO and co-founder Ryan Caldbeck. "The market for investing in these companies is incredibly inefficient, providing an opportunity for investors. We now have over 100 companies listed on the platform, representing $120 million in investable capacity. While it is still early, and these investments are illiquid, we believe CircleUp provides an unparalleled opportunity for investors to invest in innovative companies early, before they reach the scale of most private equity firms."

CircleUp uses technology to efficiently review promising consumer brands, and connect them with sophisticated investors across the nation, opening access to a previously unavailable asset class -- private equity in innovative consumer and retail companies -- that may provide investors strong returns. In addition to its funding platform, CircleUp has partnerships with companies like General Mills and P&G that provide its companies access to a robust network of expert guidance and advice.

Companies on the CircleUp platform span the consumer and retail landscape including food and beverage, pet, personal care, apparel, and retail industries. Some of the companies that have successfully completed CircleUp funding rounds include Rhythm Superfoods, Bhakti Chai, Hylete sportswear and SmartyPants Vitamins.

The investments are high risk and illiquid, and suitable only for some investors.

About CircleUp
CircleUp's mission is to help entrepreneurs thrive by giving them access to resources, from capital to advice. The company's online marketplace connects privately held consumer and retail companies with direct equity investments from accredited investors. Through partnerships with leading companies including General Mills, P&G, Johnson & Johnson and Virgin America, CircleUp also provides entrepreneurs with resources and a network of experts. CircleUp has been recognized by CNBC as one of the Top 5 Disruptive Companies and named one of Forbes' America's Most Promising Companies. The company's investors include Union Square Ventures, Google Ventures and Canaan Partners. CircleUp is based in San Francisco. More information is available at www.CircleUp.com.

1 https://www.preqin.com/docs/newsletters/pe/Preqin_PESL_Jul_2013_Venture_Capital_Conundrum.pdf and CircleUp. Data based on available information as of March 1, 2015. The IRR for CircleUp companies is only for companies that have a priced equity round. Early stage investing is high risk and investments are illiquid. Past results is not indicative of future performance, and the overall IRR of the portfolio is not yet known.

Contact Information