What role, and responsibilities, should there be for an intermediary tolook after investors?These are critical issues that must be answered if crowdfunding is tosucceed. At CircleUp, we are tackling these issues directly with threeparallel approaches:
- CircleUp reviews all companies beforeallowing them to post information on our platform. While finalinvestment decisions are always the responsibility of the investor,investors on CircleUp know they are considering opportunitiesthat have met our initial standards. We believe maintainingquality dealflow is essential for sustained engagement within anycommunity of investors, advisors and companies.
We focus on expansion capital for consumer products andretail companies. We love the consumer space because of thegreat companies we find in this middle-stage of growth
sometraction in the market already, but too small for Private Equity orstrategic investors. These companies are also easier for investorsto diligence because the investor has more information
you cantry the product, look at historical sales, and talk to customers.While these are still risky investments, the risk of outright fraud isminimized given the historical information on the company.