CircleUp: a different kind of crowdfunding
We all show our support for businesses we believe in in different ways. Some may sign up for a company’s branded credit or loyalty card to receive rewards; others may become fans on Facebook or a follower on Twitter. But there is a subset of people out there that like a company so much, they want to invest in it in order to drive growth.
These angel investments are hugely beneficial to companies that may have received money from a traditional lender, but it still isn’t enough to meet their operations goals. This is where crowdfunding investment sites like CircleUp come in handy. Companies can create a profile on the site, outlining their business plan and facts about the company.
Accredited investors can also create a profile through the site and browse through the selection of high growth consumer companies. If one of them strikes their interest, they can invest in the company via securities offered through the site. And with that investment, the investor owns a stake of the company and can monitor the hopeful resulting growth that comes with that assistance.
The social element of CircleUp
As is popular with crowdfunding and angel investor sites, there is a social element within CircleUp. If investors ever have questions for people within the company, they can directly connect with those people via the platform forum. Investors will also receive updates on the company in order to stay up-to-date on key milestones, performance records and news.
If business progresses after the initial point of investment, investors will receive dividends from that growth. Additionally, if the company is sold, they will receive a payout equal to their investment plus profits. The site is a great way to connect up-and-coming companies seeking funding to get started with investors looking to support a promising business venture. It also creates a strong network of experts in the consumer business industry.