VC-Backed Startups Raise 3x More From the Crowd

CHART OF THE WEEK

VC-backed startups are showing up in online fundraising more than ever, and the numbers suggest they are meaningfully outperforming non-VC-backed issuers on round size. Looking at Reg CF and Reg A+ rounds that closed from 2021 through 2026 YTD, VC-backed offerings raised about 3x more than their non-VC-backed counterparts: $809K vs. $262K on average (3.1x), and $303K vs. $101K at the median (3.0x). That gap does not prove causation, but it does reinforce a clear pattern: VC-backed deals tend to attract more capital from the crowd.

We also dug into which firms show up most often on the cap tables of companies raising online. The top list includes familiar names like Y Combinator and Techstars, plus repeat appearances from firms like a16z, Lightspeed, 500 Global, and Goodwater. Click through to read the full analysis, see the full Top 20 list, and get our key takeaways on these trends.

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EVENTS

Live Webinar (Mar 18 @ 1pm ET): Build a Complete Private Markets Portfolio

Private markets investing doesn’t have to be opaque. Join Kingscrowd’s educational webinar with Equity Trust Company and Willow Wealth for a practical, 3-layer portfolio framework:

• Core (diversified foundation)

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KINGSCROWD PODCAST

By Sam Fiske / Watch | Apple | Spotify

When Should You Double Down on an Investment?

We break down the framework behind follow-on investing — and why Kingscrowd Capital just reinvested in Pirouette Medical. From execution milestones to valuation discipline and VC pro rata signals, here’s how to think about doubling down.

UPCOMING EVENTS

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Qnetic develops mechanical flywheel energy storage systems that store electricity as kinetic energy rather than in chemical batteries. Its technology acts like a large mechanical battery, spinning a rotor to capture excess renewable power and releasing it when demand rises, addressing the mismatch between solar, wind, and grid needs. Positioned as a long-life, fire-safe alternative to lithium-ion systems, Qnetic targets utilities and renewable developers seeking multi-hour storage without capacity fade.

Léa’s Quick Take: Qnetic is back on Dealmaker, just a year after closing a $2.1 million round. A quick turnaround. But the company hasn’t been standing still.

Qnetic's recent progress is impressive. Over the past year, the stratup has moved from early-stage development toward commercialization. Customer pilot deployments are already targeted for the second half of 2026. Manufacturing could begin as early as 2027. To support that ramp, the company is developing a manufacturing facility in Sacramento, CA. It has also secured $101 million in signed Letters of Intent, reflecting early demand.

The trajectory is striking. In 2022, Qnetic launched a Wefunder raise without a prototype. Today, it’s planning pilots, preparing for production, and lining up customers. The pace shows that the team is focused on quick and efficient execution.

Backed by Kingscrowd Capital, Qnetic is developing a next-generation flywheel designed for grid-scale energy storage. Unlike lithium-ion batteries, the system aims to offer longer lifespans, improved safety, fewer environmental tradeoffs, and lower total cost over time, a combination that matters in large infrastructure markets.

Energy demand continues to climb, fueled by AI, data centers, and electrification. Storage is no longer optional; it’s foundational. Qnetic is positionned to take advantage of the energy storage market growth.

STAFF PICKS 🌶️

AvaWatz

By Teddy Lyons

AvaWatz develops AI-powered robotics for collaborative security and safety in high-risk environments like transportation, events, and infrastructure. It had $1.2M booked 2025 revenue, $16M+ sales pipeline, active pilots with luxury resorts and campuses, plus U.S. military R&D contracts.

My Diabetes Health

By Teddy Lyons

My Diabetes Health provides insurance-covered telehealth diabetes education and management nationwide. It has served 8,600+ patients with clinically significant results, achieved $2.1M revenue in 2025 at 61% gross margins, and anticipates 200% revenue growth in 2026.

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