Teddy Lyons at Kingscrowd has done the investment Crowdfunding community a real service with his analysis, “Who’s Hiding the Valuation? A Crowdfunding Transparency Study.” In the piece, Teddy and the Kingscrowd team reviewed 880 equity crowdfunding offerings and documented a troubling transparency gap, especially among Reg A+ offerings.
Since I read Teddy’s post when it was published weeks ago, I’ve reflected on this over and over. It is so important that I decided I need to bubble it back to the top of the conversation in the regulated investment crowdfunding community.
Teddy frames the issue well. “What is a startup actually worth?” he asks. That is the question every investor must answer before making an equity investment. Whether the Security is common stock, preferred stock, a SAFE or a convertible note, valuation—or the mechanism for determining valuation—is central to the investor’s prospects for a financial return.
Other deal terms matter, sometimes a great deal. Liquidation preferences, conversion discounts, interest rates, maturity dates, voting rights, pro rata rights and information rights can all affect outcomes. Still, from a financial standpoint, nothing matters more than valuation. A great company can be a poor investment if the entry price is too high. A risky company can sometimes be attractive if the price fairly reflects the risk.
That is why Teddy’s findings deserve attention. Kingscrowd found that 88.7 percent of Reg CF companies in its sample disclosed a clear valuation, while only 21.4 percent of Reg A+ campaigns did so. Teddy describes the difference as “a massive transparency gap,” and he is right.
To be clear, a hidden or hard-to-find valuation does not automatically mean investors should avoid the offering. It does mean investors should slow down. It is a red flag—not necessarily a stop sign. The investor’s job is to find the valuation, calculate it if necessary and then judge whether the company’s revenue, Growth rate, margins, market opportunity, competitive position and impact justify the price.
Teddy’s warning is especially important because many newer investors are drawn to low share prices. A $2 share price can feel inexpensive, but the share price alone tells you almost nothing. What matters is the company’s total valuation. As Teddy puts it, investors should “Never invest blindly based on share price alone.”
Teddy brings real credibility to this discussion. He is a Senior Investment Associate at Kingscrowd with a background in investment banking and venture capital, and Kingscrowd’s fund materials direct prospective investors to schedule calls with him about its funds.
We are also delighted that Teddy will serve as a judge for the June 3 Superpowers for Good Live Pitch. That is exactly the kind of investor discipline we want founders, investors and viewers to see modeled live: enthusiasm for entrepreneurship paired with clear-eyed attention to valuation, risk and return.
Kingscrowd and Teddy deserve praise for shining a light on this issue. Transparency builds trust. When issuers put valuation front and center, investors can make better decisions faster. When they do not, investors should do the math before writing the check.
Our generous sponsors make our work possible, serving impact investors, social entrepreneurs, community builders and diverse founders. Today’s advertisers include Emission Free Generators, PurposeBuilt100™ and Mission Booster Procurement. Learn more about advertising with us here.
(We’re grateful for every one of these community champions who make this work possible.)
Brian Christie, Brainsy | Cameron Neil, Lend For Good | Carol Fineagan, Independent Consultant | Hiten Sonpal, RISE Robotics | John Berlet, CORE Tax Deeds, LLC. | Justin Starbird, The Aebli Group | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Mark Grimes, Networked Enterprise Development | Matthew Mead, Hempitecture | Michael Pratt, Qnetic | Mike Babbit | Coledger Solutions | Mike Green, Envirosult | Nick Degnan, Unlimit Ventures | Dr. Nicole Paulk, Siren Biotechnology | Paul Lovejoy, Stakeholder Enterprise | Pearl Wright, Global Changemaker | Scott Thorpe, Philanthropist | Sharon Samjitsingh, Health Care Originals | Add Your Name Here
Join the SuperCrowd Impact League! You can be recognized for making impact investments via Reg CF. See how your activity compares to your peers. It’s free. Win valuable prizes. Start now!
SuperCrowd Impact Member Networking Session: Impact (and, of course, Max-Impact) Members of the SuperCrowd are invited to a private networking session on May 19th at 8:00 PM ET/5:00 PM PT. Mark your calendar. We’ll send private emails to Impact Members with registration details. Upgrade to Impact Membership today!
The Super Crowd, Inc. and the Crowdfunding Professional Association invite founders, issuers, investors, and crowdfunding professionals to a special joint LIVE SuperCrowdHour and CfPA webinar on May 20, 2026, at 12:00 PM Eastern, featuring Devin Thorpe presenting “How to File Your Form C-AR Yourself for Free!” This practical educational session is designed to help Regulation Crowdfunding issuers understand the annual Form C-AR filing process, avoid common compliance mistakes, meet key deadlines, and strengthen investor trust without unnecessary legal or filing expenses. Whether you are preparing your first annual filing or managing post-raise compliance, this webinar will provide clear, actionable guidance to help you confidently handle your Form C-AR responsibilities. Register here: https://thesupercrowd.com/20may26
SuperCrowd26 featuring PurposeBuilt100™: This August 25–27, founders, investors, and ecosystem leaders will gather for a three-day, broadcast-quality global experience focused on disciplined capital formation, regulated investment crowdfunding, and purpose-driven growth. We’re bringing together leading voices in impact Investing, compliance, digital marketing, and circular Economy Innovation to deliver practical frameworks, real-world case studies, and actionable strategies. The event culminates in the PurposeBuilt100™ Showcase, recognizing 100 of the fastest-growing purpose-driven companies in the U.S. Register now to secure your seat and get all the details. August 25–27, Streaming worldwide.
Share the application for the PurposeBuilt100™: Purpose-driven founders deserve recognition. The PurposeBuilt100™ application window is now open—celebrating the fastest-growing companies building profit with purpose. If you know a founder creating real impact and real growth, please share this opportunity. Applications are free and confidential. Explore the program and apply today: PurposeBuilt100.com.
Successful Funding with Karl Dakin, Tuesdays at 10:00 AM ET – Click on Events.
Earthstock Summit, Ojai, CA, May 29-31: The Earthstock Regenerative Summit in Ojai brings together leaders and community members for panels, workshops, films, music, and hands-on projects focused on regenerative agriculture, ecological design, resilience, Health, and sustainable living.
Save the Date! October 20th and 21st will be the Crowdfunding Professional Association Regulated Investment Crowdfunding Summit for 2026. This is the event of the year for everyone in the crowdfunding ecosystem.
If you would like to submit an event for us to share with the 10,000+ changemakers, investors and entrepreneurs who are members of the SuperCrowd, click here.
Manage the volume of emails you receive from us by clicking here.
We share educational information—not investment advice. Some links may generate compensation. See our full disclosure.
Originally Published on https://www.superpowers4good.com/
