CircleUp closes $14 million Series B funding
Series B round led by Canaan Partners with additional investment from Google Ventures, Union Square Ventures, Maveron and Rose Park Advisors will be used to invest in product and data analytics.
March 25, 2014
CircleUp, a leading equity-based crowdfunding platform, announced today it has closed a $14 million Series B round of funding, the largest raise for an equity crowdfunding platform. The Series B round, led by Canaan Partners with additional investment from Google Ventures, Union Square Ventures, Maveron and Rose Park Advisors will be used to invest in product and data analytics—making it easier for investors to identify, diligence and invest in companies they understand. This announcement comes just before CircleUp’s second anniversary.
Since CircleUp’s equity crowdfunding platform launched in April 2012, the company has helped more than 30 companies raise over $30 million in growth capital, making it the largest equity crowdfunding site in the U.S. The amount invested through the platform grew 5X in 2013. The team expects this rapid growth to continue. It took 134 days for the first $1 million raised through the platform—the most recent million took just 7 days.
With Canaan, CircleUp adds another investor with deep experience in online markets. Dan Ciporin, currently on the Board of Lending Club, will also join CircleUp’s Board.
“Canaan looks for breakout leaders in huge markets where technology can add significant value,” explained Dan Ciporin, general partner at Canaan Partners. “We saw that with Lending Club in the credit marketplace space in 2007, and we see that with CircleUp in the equity marketplace sector in 2014. In similar fashion to how Lending Club is beginning to completely transform the consumer and small business credit industry, we think the equity fundraising space is poised for similar and equally massive disruption, and that CircleUp is the demonstrable leader in the space.”