The companies provide updates through a forum and investors are encouraged to engage with the company through scheduled conference calls.
If the company grows, your investment will grow alongside the company. If there is a dividend, you’ll be entitled to your share of distribution. If the company is sold to another company or large investment firm, you will receive your share of the proceeds directly from the company - a return on investment for your early belief.
Risks and Returns
While CircleUp can not predict or guarantee returns, investors are encouraged to understand that private investing is an illiquid asset class that typically requires investors to hold their investment for several years. Independent research from the Kauffman Foundation found investors in consumer companies at a similar stage had returns of 3.6x with an average hold of 4.4 years. Those returns typically require investors to diversify and invest in multiple deals and there is no guarantee that investors will receive any return on their investment(s).