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Invest in 25+ companies with a minimum of ((::circle.minimum_investment_display)). Diversified. Early-stage. Not tech.

Closed
Dealroom

Note: Marketplace Index Fund II, L.P. is currently accepting investments but has not begun to deploy capital.

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To view a closed fund with a similar investment philosophy of diversification but different underlying investments, please see Marketplace Index Fund I, L.P.

Details

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    Invested in Fund
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  • ((::circle.fund_management_fee))%
    Management Fee
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    Carry
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Investors

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In The News
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2016-05-26

Circle Up Rethinks Venture Capital For Consumer Goods

The marketplace's new, low-cost, tech-driven MIX index funds aim to simplify investing in consumer goods start-ups.

Frequently Asked Questions

    Index Fund

    • The Fund is managed by CircleUp Advisors, LLC, a subsidiary of CircleUp Network, Inc.
    • Companies go through a rigorous selection process to be listed on the CircleUp platform and included in the MIX fund. Many companies apply to be listed on CircleUp (several thousands to date). CircleUp leverages our proprietary Classifier technology and data to screen those companies and ensure that the best opportunities are selected for the CircleUp marketplace. (Learn more about our Classifier technology here.) All companies are then thoroughly reviewed by our team of investment professionals prior to approval and listing on the CircleUp platform to ensure they meet a minimum met of requirements which can include reviewing historical financials, interviewing management, analyzing products and business models, and assessing future business plans and capital needs. Once a company is listed on the CircleUp platform, it must raise a minimum threshold amount (set as part of the CircleUp review process) from the CircleUp marketplace in order for that raise to close. And finally, in order for a company to receive an investment from the MIX fund, the individual deal and rights must meet a set of criteria, namely (a) must be an offering of certain security types (MIX will only invest in convertible debt or convertible preferred equity) and (b) the company must sign a simple side letter with MIX to provide a minimum set of investor rights (e.g. pro rata and information rights).
    • Pro rata rights offer shareholders the option to invest additional capital to maintain their percentage of ownership in underlying companies from one round to the next. While the Fund itself receives these rights, in some cases they will be extended proportionally to certain Limited Partners. Information rights grant the shareholder access to certain information on the performance of a company. CircleUp will use this information to create periodic aggregated reporting on the Fund’s holdings.
    • Each MIX fund will begin deploying capital after the closing of fundraising. We expect each of the MIX fund’s capital will be deployed within 12 months of its fundraising close.
    • The fund will invest ~$100,000 per company into a set number of qualifying companies (depending on the final size of the Fund at closing).
    • Private equity funds are generally illiquid investment vehicles, often resulting in holding periods of greater than 5-7 years.
    • The Fund has a 0.5% management fee and 0% carried interest.
    • Limited Partners will receive quarterly summary reports, detailed annual reports and K1s.
    • Upon an exit, capital is distributed to the Fund and proportionally distributed to each Limited Partner (LP) based on the percentage of the total fund held by the LP.
    • The Fund has a limited number of seats available. Due to high demand, some reservations may be deferred to a future fund.
    • CircleUp is the world’s largest investment marketplace for emerging consumer brands. CircleUp enables companies to spend less time and resources on successfully raising capital while providing investors with a source and forum for discovering and investing in innovative and exciting earlier-stage consumer companies. To date, we’ve helped over 150 companies raise hundreds of millions in capital. Our marketplace is powered by the Classifier, technology that analyzes every prospective company across 150+ unique dimensions. CircleUp is backed by Union Square Ventures, Canaan Ventures, Collaborative Fund, QED Investors, Google Ventures, and former leaders of Goldman Sachs, Thomson Reuters, the Stanford Endowment and other notable financial institutions.
    • The average company on CircleUp has ~$1 million in revenues and is growing rapidly, though it can range from pre-revenue to companies with $5M+ in revenues. The average raise on CircleUp is ~$1 million. The amount of time it takes to complete a raise varies from a few days to several months, with an average of approximately 3 months.
    • There will be several separate and distinct MIX funds with different "vintages" i.e. will invest into companies that launch AFTER the closing of that particular fund, until that fund is fully invested. There will not be any overlap between the different MIX funds in terms of investments.
    • While individual investors could essentially invest using the same approach as MIX fund, the fund approach provides several key benefits to investors. First, investors only need to invest once in a MIX fund, with CircleUp then managing the mechanics of reviewing and investing in each company and reporting on the financial performance of that MIX fund. Moreover, investing in a MIX fund allows investors to deploy substantially less capital to build a broad, diversified portfolio. For example, individual companies on the CircleUp platform often have a minimum investment of $25,000 or more. Due to these minimums per deal, the total amount of capital to create a substantial portfolio of companies could be in excess of $1 million. MIX allows investors to build a portfolio of 25+ companies with a minimum investment of $25,000, essentially bypassing the per company minimum investment by investing through a fund.
    • We won’t know the exact companies until the investments are made. MIX will invest in the first i.e. next 25+ companies that meet the MIX criteria.
    • The Marketplace Index Funds (MIX or “the Funds”) are separate pools of capital from CircleUp investors. The Funds will separately invest $100,000 per company in a broad range of companies that successfully raise on the CircleUp platform. The goal of the Funds is to invest in 25 or more companies (the actual number of companies will be determined by the total amount raised). This is a way for investors to have a broad portfolio of investments and essentially bypass the company investment minimums by pooling capital. The Marketplace Index Fund I, L.P. (MIX I) has closed its fundraising and is currently deploying capital. The Marketplace Index Fund II, L.P. (MIX II) is currently accepting investments.
    • We are looking into potentially accepting investments from IRA’s. If you are interested in learning more, please email mix@circleup.com to let us know how much you would consider investing through a retirement account.