This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CircleUp Wants To Be the 'Silicon Valley' for Consumer Goods Ventures

Stocks in this article: GIS PG

Already the model is working. CircleUp was launched in 2011, but has only been operational for one year. In that time frame, the Web portal has already helped 12 companies raise $10 million in growth capital.

While the average food company on Kickstarter raises less than $10,000, the average company on CircleUp raises close to $1 million, according to the company.

The companies, on average, have had more than $1 million in annual revenue, are growing at more than 70% per year and raised money in just over two months, the company says.

"We think there is a huge opportunity in consumer. It's very underserved by financial markets," Eakin says.

"Most have done a friends and family investing round, but this will be their first round of expansion capital beyond that," he says.

Friday marks the first anniversary of The Jumpstart Our Business Startups Act (JOBS Act), which, in its most basic sense, relaxed the stringent rules attached to small private companies from raising capital. One specific in the law opens up the gates for investment-based or equity crowdfunding allowing accredited as well as unaccredited investors to make investments in promising entrepreneurial ventures or small companies looking for expansion funding. However, the Securities and Exchange Commission has dragged its feet on finalizing rules for investment-based crowdfunding, putting implementation likely in 2014 at this point.


Once the rules are settled, speculation regarding the potential for investment-based crowdfunding is astonishing. Some experts believe that equity crowdfunding could grow to be a $300-billion industry, but there are high hurdles to jump to get to that level, such as legal and cultural barriers to get past.

"I think it's realistic, but you really have to look out not months, but years -- many, many years," angel investor Chris Camillo said at the inaugural Crowdfund Texas Conference in Austin.

That said, Camillo, in an interview with TheStreet on Wednesday, said CircleUp's sector-specific focus is a good bet on the future of crowdfunding portals.

"Specialization is at the core of crowdfunding portals," Camillo says.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs