More advisors ≠ bigger raises — here’s what the data shows

CHART OF THE WEEK

By Teddy Lyons | Read

Do Advisors Really Matter? What the Data Says

Founders are often told that adding advisors will help them raise more capital or secure better valuations—but Kingscrowd’s data tells a different story. Looking at successful Reg CF raises since 2021, we found no clear link between advisor count and higher pricing or total funds raised. In fact, companies with just one advisor often landed stronger terms than those with large advisory groups. However, there’s one area where advisors correlate strongly: VC involvement. The share of venture-backed startups climbs from 18% with no advisors to nearly 30% with two or more. It’s unclear which comes first—the capital or the counsel—but the connection between advisory support and institutional attention is undeniable.

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EVENTS THIS WEDNESDAY, NOVEMBER 19TH

Investor Access Webinar — Alternative Opportunities via Reg A

Inside Pacaso’s $72.5 Million Reg A+ Raise

See how Pacaso brought 17,000 investors into luxury real estate ownership through one of the largest Reg A raises in history.

This Wednesday, Senior Director Tom Mulholland joins Kingscrowd CEO Chris Lustrino to explain how Reg A is creating new access points to alternative assets like real estate — and why it’s shaping the future of investing.

🗓️ Nov 19th, 1pm ET → Register now 👇

UPCOMING EVENTS

KINGSCROWD PODCAST

Retail got up to 30–35% allocations in recent IPOs—access is widening while Reg CF held ~$34M in October.

By Sam Fiske / Watch | Apple | Spotify


Brian & Teddy unpack how retail is getting into IPOs (DSPs → brokerage allocations up to 30–35%), then connect Michael Burry’s headline shorts in AI mega-caps (e.g., NVDA, PLTR) to shifting risk appetite—and what that could mean for private deals. We also break down ~$34M in October Reg CF and platform trends.

• Retail IPO access is widening (up to 30–35%)
• Burry vs. AI: what public-market sentiment signals for private investing
• October Reg CF ~ $34M; multiple campaigns hit the $5M cap
• Platform/secondary consolidation and how founders/investors should respond

PITCH REVIEW 💸

By Teddy Lyons \ Deal Report

Brief: Tender Loving Empire operates seven retail stores across two states, supporting independent artists, makers, and small creative businesses through its community-driven retail model. Having grown 13x over the past decade and generating $7.8 million in 2024 revenue with a 62% gross margin, the brand has become a hub for local creativity and culture.

Teddy’s Take: Tender Loving Empire feels like a throwback to a world where retail actually meant something. I grew up in rural Vermont, where community was not an abstract idea but a daily practice. People knew the names of the artists whose pottery sat on their shelves. Stores were run by neighbors. Buying local was not a marketing slogan but a quiet act of loyalty. 

I suspect that this is the vibe and ambiance that Tender Loving Empire is going for, a retail model built around showcasing local, independent makers while still operating as a real, scaled business.  Tender Loving Empire started as a small consignment shop selling the work of about 25 artists, pulling in ~$50K in its first year. Fast-forward to today, TLE operates seven retail stores across two states, including high-traffic locations in the Portland and Seattle-Tacoma airports. The company has quickly grown to $7.8M in revenue with 62% gross margins (projecting profitability in 2025). The Seattle airport location brought in $2M in its first year alone. On top of that, the business has generated over $20M in payouts to more than 500 independent makers since inception.

As an investor, I am generally not a brick-and-mortar guy. Expansion costs often compress margins unless a company has exceptional discipline around cash flow and debt management. However, the team at Tender Loving Empire seems to have managed physical growth with more control than most retailers in its category. They have chosen locations with steady, reliable foot traffic, they have balanced consignment inventory with a high margin in-house product line, and they have maintained long-standing relationships with the independent makers whose products fill their shelves.

STAFF PICKS 🌶️

Lumi

By Teddy Lyons

Lumi makes portable projectors that turn homes, vans, and backyards into personal movie theaters. Despite generating $1.1M in first-year revenue with 55% gross margins and $465K in Fortune 500 contracts, is the company still too niche to scale?

Slabmags

By Teddy Lyons

Slabmags makes premium protective display cases for graded trading cards. With more than 200,000 units sold and a 40,000-member collector community across 200+ dealers, the brand has become a global staple in the hobby.

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