CircleUp
{{Short description|American financial technology company}}
{{Infobox company
| name = CircleUp
| logo = CircleUp logo.png
| type = Private
| industry = Financial technology
| location = San Francisco, California
| founded = {{start date and age|2011}}
| founders = Ryan Caldbeck, CEO
Rory Eakin, COO
| website = {{url|https://circleup.com}}
}}
CircleUp is a financial technology company based in San Francisco that focuses on consumer goods startups. Since its official launch in April 2012, CircleUp has helped several consumer companies raise equity, including Back to the Roots,{{Cite web|author=Bercovici, Jeff|url=https://www.inc.com/jeff-bercovici/back-to-the-roots.html|title=Why This Food Startup Says Hold the Technology|date=28 January 2016|publisher=Inc.|accessdate=26 January 2018}} Halo Top Creamery,{{Cite web|author=LaVito, Angelica|url=https://www.cnbc.com/2017/06/29/halo-top-and-the-future-of-ice-cream.html|title=The future of ice cream looks a lot like Halo Top|date=29 June 2017|publisher=CNBC|accessdate=26 January 2018}} Little Duck Organics,{{cite web|title=Melt Raises Equity Through Crowdfunding|url=http://foodbeverage.about.com/od/womenfoodpreneurs/a/How-To-Fund-Your-Food-Business-With-Crowdfunding-.htm|access-date=2012-10-20|archive-date=2012-10-01|archive-url=https://web.archive.org/web/20121001061554/http://foodbeverage.about.com/od/womenfoodpreneurs/a/How-To-Fund-Your-Food-Business-With-Crowdfunding-.htm|url-status=dead}} Rhythm Superfoods{{Cite web|author=Watson, Elaine|url=https://www.foodnavigator-usa.com/Article/2016/01/13/Rhythm-Superfoods-3m-financing-led-by-Gen-Mills-CircleUp|title=Rhythm Superfoods closes $3m financing round led by Gen Mills' 301 INC arm and CircleUp; plans new beet chip launch|date=13 January 2016|publisher=Food Navigator|accessdate=26 January 2018}}{{Cite web|author=Giammona, Craig|url=https://www.bloomberg.com/news/articles/2017-01-17/general-mills-backs-kale-chips-as-big-food-searches-for-growth|title=General Mills Turns to Kale Chips to Boost Growth|date=17 January 2017|publisher=Bloomberg|accessdate=26 January 2018}} and others. General Mills has an investment fund that is partnered with CircleUp to invest in companies listed on the platform.{{Cite web|author=Leena Rao|url=http://fortune.com/2015/11/11/circleup-funding-consumer-packaged-goods/|title=Where The Next Ben & Jerry's Can Find Investors|date=11 November 2015|publisher=Fortune|accessdate=26 January 2018}}{{Cite web|author=Kolodny, Lora|url=https://www.wsj.com/articles/DJFVW00120151104ebb49hc8c|title=General Mills Fund to Back Food Startups Through CircleUp|date=4 November 2015|publisher=The Wall Street Journal|accessdate=26 January 2018}}{{Cite web|author=Clifford, Catherine|url=https://www.entrepreneur.com/article/252488#|title=Why This $34 Billion Company Is Dipping a Toe Into Crowdfunding|date=4 November 2015|publisher=Entrepreneur|accessdate=26 January 2018}}
History
CircleUp was founded in 2011 by ex-private equity professionals Ryan Caldbeck and Rory Eakin.{{cite web|title=$1,000 and a Click|url=http://www.businessweek.com/articles/2012-04-18/5-000-and-a-click-buying-stock-the-crowdfunding-way|archive-url=https://web.archive.org/web/20120421031616/http://www.businessweek.com/articles/2012-04-18/5-000-and-a-click-buying-stock-the-crowdfunding-way|url-status=dead|archive-date=April 21, 2012}} Prior to launch, CircleUp raised $1.5 million from investors such as Clayton Christensen, David Topper (ex-head of Equity Capital Markets at JP Morgan) and Maveron (a venture capital firm founded by Howard Schultz).{{cite web|title=Backed with $1.5M, CircleUp Aims High|date=18 April 2012 |url=https://techcrunch.com/2012/04/18/circleup/}} The company officially launched in 2012 as a platform for entrepreneurs to raise capital and for investors to find companies to fund that were not part of the tech industry. Only original shares of the company are sold through the CircleUp platform.{{Cite web|author=Needleman, Rafe|url=https://www.cnet.com/news/circleup-crowdfunding-for-the-1-percent/|title=CircleUp: Crowdfunding for the 1 percent|date=18 April 2012|publisher=CNet|accessdate=26 January 2018}} On the site, entrepreneurs can connect with investors and investors are able to find investment opportunities as well as diligence materials such as investor presentations, financials, product details, industry information and third-party data.{{cite web|title=Crowdfunding for Accredited Investors|url=http://news.cnet.com/8301-32973_3-57415569-296/circleup-crowdfunding-for-the-1-percent/}} CircleUp partnered with SecondMarket to cross-list companies seeking investments.{{Cite web|author=Griffith, Erin|url=https://pando.com/2013/01/10/circleup-funds-five-food-companies-partners-with-secondmarket/|title=CircleUp funds five food companies, partners with SecondMarket|date=10 January 2013|publisher=Pando|accessdate=26 January 2018}} In 2014, CircleUp raised $14 million in a financing round led by Canaan Partners and including previous investors Google Ventures and Union Square Ventures.{{Cite web|author=Alden, William|url=https://dealbook.nytimes.com/2014/03/26/crowdfunding-site-circleup-raises-14-million/?mtrref=www.google.com|title=Crowdfunding Site CircleUp Raises $14 Million|date=26 March 2014|work=The New York Times|accessdate=26 January 2018}}
In 2015, CircleUp raised a $22 million fund, the CircleUp Growth Fund, which would match investments coming through its platform.{{Cite web|author=Lunden, Ingrid|url=https://techcrunch.com/2015/07/13/circleup-raises-22m-to-invest-in-consumer-brands-on-its-crowdfunding-platform/|title=CircleUp Raises $22M To Invest In Consumer Brands On Its Crowdfunding Platform|date=13 July 2015|publisher=Tech Crunch|accessdate=26 January 2018}} On November 11, 2015, the company announced its Series C funding round of $30 million led by Collaborative Fund.{{Cite web|title = CircleUp Banks $30 Million to Help Investors Find Top Food Startups|url = https://blogs.wsj.com/venturecapital/2015/11/11/circleup-banks-30-million-to-help-investors-find-top-food-startups/|date = 2015-11-11|accessdate = 2015-11-11|first = Lora|last = Kolodny}}{{Cite web|url=https://www.pymnts.com/news/b2b-payments/2017/circleup-adds-lines-of-credit-to-equity-finance-platform/|title=CircleUp Adds Lines of Credit To Equity Finance Platform|date=27 July 2017|publisher=Pymnts.com|accessdate=26 January 2018}}
In 2016, CircleUp ran a closed trial of its Marketplace Index Fund, designed to give larger investors access to a portfolio of consumer products companies, which were identified through the company's classifier software, which was later named Helio.{{Cite web| author=Ugolik, Kaitlin|url=https://www.institutionalinvestor.com/article/b14z9r14lr2l21/circleup-rethinks-venture-capital-for-consumer-goods|title=CircleUp Rethinks Venture Capital for Consumer Goods|date=26 May 2016|publisher=Institutional Investor|accessdate=26 January 2018}}
CircleUp Credit Advisors was announced in July 2017 as an online lender for companies seeking credit with favorable investment data. Community Investment Manager partnered with CircleUp to provide a $20 million credit facility.
In October 2017, the company launched a $125 million investment fund, CircleUp Growth Partners, dedicated to early-stage consumer companies. The fund uses CircleUp's Helio software.{{Cite web|url=http://www.finsmes.com/2017/10/circleup-launches-new-125m-venture-capital-fund.html|title=CircleUp Launches New $125M Venture Capital Fund|date=31 October 2017|publisher=Finsmes|accessdate=26 January 2018}} CircleUp joined the Nielsen Connected Partner program in December 2017. The partnership allows CircleUp to use Nielsen data for its Helio software.{{Cite web|url=https://www.research-live.com/article/news/circleup-joins-nielsen-connected-partner-programme/id/5031982|title=CircleUp Joins Nielsen Connected Partner Programme|date=14 December 2017|publisher=Research Live|accessdate=26 January 2018}}
On December 11, 2018, it was reported that CircleUp's founder and CEO Ryan Caldbeck was "talking about building a systematic fund in the private markets."{{Citation |title=Term Sheet: A Direct Public Debut |publisher=Fortune |url=http://fortune.com/2018/12/11/term-sheet-tuesday-december-11/}}
Helio
The Helio software, originally referred to as The Classifier, analyzes public and private company data from public records, partnerships and information the company has acquired to identify potential investments.{{Cite web|author=McAlone, Nathan|url=http://www.businessinsider.com/andy-weissman-union-square-ventures-circleup-2016-9|title=Why this top tech investor is funding a startup that could chop away at his own business|date=30 September 2016|publisher=Business Insider|accessdate=26 January 2018}}{{Cite web|author=Kessler, Sarah|url=https://www.fastcompany.com/3057844/when-data-not-humans-guide-vc-funding-more-women-win|title=When Sata – Not Humans – Guide VC Funding, More Women Win|date=17 March 2016|publisher=Fast Company|accessdate=26 January 2018}}{{Cite web|author=Mims, Christopher|url=https://www.wsj.com/articles/software-is-disrupting-venture-capital-sector-1457326861|title=Software Is Disrupting Venture-Capital Sector|date=7 March 2016|publisher=The Wall Street Journal|accessdate=26 January 2018}} It identifies brands which make between $1 million and $15 million in revenue as signs that they are likely to breakout. It creates analyses with classifications such as reach of distribution, product quality, brand strength, information on the management team as well as company financials which is then reviewed by a team of analysts.{{Cite web|author=Griffith, Erin|url=http://fortune.com/2017/02/27/circleup-moneyball/|title=Investment Platform CircleUp Is Using a Moneyball-Style Algorithm to Identify the Next Hit Consumer Brand|date=27 February 2017|publisher=Fortune|accessdate=26 January 2018}}{{Cite web|author=Konrad, Alex|url=https://www.forbes.com/sites/alexkonrad/2017/10/31/circleup-fund-brings-moneyball-to-consumer-brands/#1f60633b2a82|title=CircleUp's $125 Million Fund Looks To Bring Moneyball To Backing Consumer Brand Winners|date=31 October 2017|work=Forbes|accessdate=26 January 2018}}{{Cite web|author=Watson, Elaine|url=https://www.foodnavigator-usa.com/Article/2017/10/31/125m-CircleUp-fund-will-take-human-bias-out-of-early-stage-CPG-investments|title=$125m CircleUp fund will take 'human bias' out of early stage CPG investments|date=31 October 2017|publisher=Food Navigator|accessdate=26 January 2018}}
CircleUp Credit Advisors
CircleUp Credit Advisors was established to extend lines of credit to companies in need of additional working capital or small amounts of capital needed for company growth. As the loans are repaid, CircleUp can fund additional companies. At the time that CircleUp Credit Advisors launched, it had initially issued 50 loans to companies identified by the Helio software.{{Cite web|author=Lawler, Ryan|url=https://techcrunch.com/2017/07/26/circleup-credit-advisors/|title=CPG investing platform CircleUp will now issue loans to help consumer brands grow|date=26 July 2017|publisher=Tech Crunch|accessdate=26 January 2018}}{{Cite web|author=Wack, Kevin|url=https://www.americanbanker.com/news/crowdfunding-platform-expands-into-small-business-lending|title=Crowdfunding platform expands into small-business lending|date=26 July 2017|publisher=American Banker|accessdate=26 January 2018}}{{Cite web|author=Calvey, Mark|url=https://www.bizjournals.com/sanfrancisco/news/2017/07/26/circleup-consumer-products-small-business-lending.html|title=CircleUp expands into lending to consumer startups|date=26 July 2017|publisher=San Francisco Business Times|accessdate=26 January 2018}}
CircleUp Growth Partners
CircleUp Growth Partners was launched in 2017 as a $125 million fund designed to invest in startup consumer product companies. Initial investments included HUM Nutrition and, 4505 Chicharrones. The fund was backed by Temasek Holdings, former BlackRock executive Ken Kroner, co-founder of Bumble and Bumble hair care Tevya Finger, former Annie's Homegrown CEO John Foraker, founder of Plum Organics Gigi Lee Chang and Euclidean Capital.{{Cite web|author=Kolodny, Lora| url=https://www.cnbc.com/2017/10/31/circleup-growth-partners-new-fund.html|title=A new fund uses A.I. to invest in consumer and retail products with the best chance of success|date=31 October 2017|publisher=CNBC|accessdate=26 January 2018}}{{Cite web| author=Roof, Katie|url=https://techcrunch.com/2017/10/31/circleup-announced-125-million-venture-fund/|title=CircleUp announced $125 million venture fund|date=31 October 2017|publisher=Tech Crunch|accessdate=26 January 2018}}{{Cite web|author=Ortenberg, Carol|url=https://www.bevnet.com/news/2017/circleup-closes-125m-fund-powered-machine-learning|title=CircleUp Closes $125M Fund Powered by Machine Learning|date=31 October 2017|publisher=Bevnet|accessdate=26 January 2018}}