Why More VC-Backed Companies Are Raising from Retail Investors

CHART OF THE WEEK

VC-Backed Startups Are Showing Up More Often in Equity Crowdfunding
Equity crowdfunding is no longer just a last resort for capital-constrained founders. From 2022 to 2025, the share of crowdfunding raises involving venture capital backing climbed steadily from 7.1% to 21.6%, signaling a meaningful shift in how startups approach fundraising. As platforms mature and deal quality improves, more VC-backed companies are turning to the crowd to expand their investor base, build brand loyalty, and raise incremental capital.

For retail investors, this trend means greater access to professionally vetted companies—but also a reminder that VC involvement complements, rather than replaces, individual due diligence.

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DEMO DAY RECAP

Our Q4 2025 Kingscrowd Demo Day replay is live—featuring pitches from Macrovey (robotics + warehouse automation), Koios Medical (AI-powered smart ultrasound for cancer detection), and TMA Precision Health (AI-driven precision medicine for complex genetic disease). With guest co-host David Willbrand (Pacaso CLO) leading founder Q&A alongside Kingscrowd’s Teddy Lyons, the audience voted Koios Medical as Best Pitch—winning by a single vote.

KINGSCROWD PODCAST

Are Secondaries Waking Up?

By Sam Fiske / Watch | Apple | Spotify

TerraCycle’s shares got scooped on StartEngine’s secondary marketplace—at prices below the company’s current round. Brian and Scott unpack what likely happened, how to sanity-check classes/splits/terms before you buy, and why growing ATS activity (incl. GigaStar’s creator rev-share plans) could reshape retail liquidity.

PITCH REVIEW 💸

By Teddy Lyons \ Deal Report

Brief: BabyQuip provides a baby gear rental service for traveling families in the US, Canada, Australia, New Zealand, Mexico, and the Caribbean.

Teddy’s Quick Take: For those who follow our Kingswood Capital investments, you may be familiar with BabyQuip. The company makes travel with little ones way less of a hassle by delivering clean, sanitized baby gear right to your hotel, Airbnb, or vacation rental. Think cribs, strollers, car seats, high chairs, all that stuff parents lug around on trips. No more wrestling with airline baggage fees or cramming your trunk full. They handle the sourcing, cleaning, and delivery through a network of local providers, so you can focus on the fun parts of family travel.

What we love about BabyQuip is the powerhouse team behind it. Founder Fran Maier started as a mom frustrated with gear-hauling nightmares, but she brought serious firepower from her days as a co-founder of Match.com. She helped build that into a household name, so turning BabyQuip into the go-to brand for traveling families feels like second nature. The moat is solid too. Minimal direct competition means they dominate this niche, and with a network of over 3,000 vetted providers across 350+ cities worldwide, they've locked in reliability that newcomers can't touch. Add in their established trust, from glowing reviews to partnerships with big travel players, and it's clear they've built something sticky and scalable.

I got to see Fran's skills up close just last night, when I served as a judge for the Superpowers for Good Live Pitch Event. BabyQuip was one of four startups pitching, each one swinging for the fences in areas like family well-being, climate, and healthcare. Fran absolutely crushed it. She broke down the market pain points with real stories from parents on the road, walked through their growth numbers, and made a crystal-clear case for why this is the next big thing in family travel tech. Her energy was infectious, and she handled the Q&A like a pro, turning tough questions into chances to spotlight their provider network and expansion plans. The judges unanimously voted BabyQuip the winner, and honestly, it wasn't even close. Moments like that remind you why founder-market fit matters so much.

So how is the company doing since we invested? Well back in 2023, BabyQuip was pulling in $3.4M in annual revenue at a $29.7M valuation. Fast forward to now, and they're raising at $35M with revenues more than doubled to $6M. Bookings are surging as travel rebounds, and they're expanding into new markets like Europe.If you're into consumer plays with real traction and a founder who knows how to win, BabyQuip's worth a deeper look on StartEngine.

STAFF PICKS 🌶️

Pump for Joy

By Teddy Lyons

Pump for Joy also pitched at SuperCrowd’s Q4 event, which I judged, and founder Erin Martin stood out immediately. The company applies a razor blade style model to breast pumps in a way that feels obvious in hindsight and long overdue.

Surge

By Teddy Lyons

As AI moves from screens into streets, Surge Networks supplies the real-time spatial data those systems depend on. Its edge infrastructure enables machines, cities, and developers to operate with live environmental intelligence.

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