New York-based venture firm, Collaborative Fund has partnered with crowdfunding platform, CircleUp to invest $4 million into certified B Corps.
According to Wall Street Journal, CircleUp has already helped nine certified B Corps raise $10.2 million in equity funding from accredited angel investors. One of them, Peeled Snacks, raised $2.38 million, which is the most that a single B Corp has made on the platform.
Earlier this week, Collaborative Fund shared the news on its blog and wrote,”CircleUp, a crowdfunding platform that connects accredited investors with consumer retail brands, is quickly becoming a stronghold for conversation around these trends. In the past two years, CircleUp has raised $40M for 40 companies and reduced the average time to raise capital from 12 months to 60 days. In a world where technology is making it easier to source, screen, and invest in deals across the board, CircleUp’s platform makes it more efficient for consumer retail companies to find funding. And, with any paradigm shift comes an opportunity to set the tone for the future.”
“Among venture capital firms, Collaborative Fund has been at the forefront of investing in seed-stage companies with positive corporate values that we expect will be commonplace in coming years, with investments in companies such as Gumroad, Earnest, and Hampton Creek Foods. That’s why we’ve decided to partner with CircleUp to invest in consumer brands that align with these values.”
Collaborative Fund’s partner, Kanyi Maqubela, reported the firm is investing $1 million in CircleUp’s “B Corpo Circle” through a Special Purpose Vehicle that includes new capital from some of the firm’s prior limited partners. He also noted that the B Corp Circle will help inform Collaborative partners of “who’s doing what” in consumer goods and retail.
Managing director of CircleUp, Jayson Yaun, will be making decisions about which B Corp companies will receive funds from the “Circle” and participating co-investors. He revealed that other firms or accredited angel investors may yet join the diversified investment fund.
CircleUp co-founder Ryan Caldbeck and Yuan both state they expect other venture firms to follow in the footsteps of Collaborative Funds by joining equity crowdfunding platform s to get “diversified access” to companies in a certain industry, and an “attractive asset class.”
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