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
TheStreet Open House

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

"I am not sure if that correlates to thousands of specific portals or a small handful of mega-portals . . . that have successfully found a way to create micro-communities within their portal where they can group like-minded investors and connect them with crowdfunding startups that kind of match their specialization or their background," he cautions.

Still he relates the idea to specialized accelerator programs and uses the example of an educational software accelerator program in Dallas.

"They have a lot to offer startups -- dozens of mentors that started in the education space or professionals that are currently running in the education software space," Camillo says. "As a result they have the ability to provide a tremendous amount of value in the education software space. I really see crowdfunding moving in that same direction."


So does CircleUp.

CircleUp is partnering with big name consumer corporations like General Mills (GIS) and Procter & Gamble (PG). Through the partnerships, General Mills and P&G will offer mentoring to the companies on things like growing brands, licensing deals, etc.

The partnerships then give the corporations a view of the early-stage consumer products market and the ability to screen potential investments or eventual acquisitions.

One criticism against CircleUp is the amount of data and financials a company has to provide in order to be listed on the site. Startups worry that it will lessen their competitive advantage if they essentially give away all their secrets, but others say it's the price you pay if you want funding.

"It's one way that were trying to add value not only to the companies, but the ecosystem overall," Eakin says.

The company also dismisses criticism of whether it should be called a crowdfunding or private placement site, with Eakin saying: "we are a crowdfunding site that provides investment opportunities for accredited investors. We enable individual investors to come together to invest in a private business. Current regulations limit this model to accredited investors only, and we follow those regulations."

The main challenge for the company right now is keeping up with demand both from companies seeking funding as well as investors hungry for investment opportunities, he says.

"We believe the models like CircleUp -- and there are others -- have demonstrated the Internet can be an efficient tool to start investors' due diligence processes," Eakin says. "It's a way of connecting potential investors to high-growth small businesses in a way that wasn't possible so far."

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

>To submit a news tip, email: tips@thestreet.com.

RELATED STORIES:







Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
3 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!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

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