The Valuation Reality

𝐖𝐞𝐞𝐤𝐥𝐲 𝐓𝐚𝐤𝐞

Talent doesn't guarantee investment. Price matters as much as potential.

I recently evaluated two founders in their early 20s, both raising through Crowdsurf under Reg D. If you're an accredited investor, apply to see private deals here.

Both had hustle, vision, and clear market opportunities. But only one understood how to ask for capital that matched their current reality.

The difference between a yes and a "not yet" often comes down to whether founders can separate what they're worth today from what they might become tomorrow.

𝐅𝐨𝐮𝐧𝐝𝐞𝐫 𝐏𝐫𝐨𝐟𝐢𝐥𝐞𝐬

𝐓𝐡𝐞 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝

𝐅𝐨𝐮𝐧𝐝𝐞𝐫 𝐀: 𝐘𝐞𝐬 ✅

This founder's accelerated degree-completion platform addresses a real friction point in higher education. The concept uses transferable credits and personalized coaching to help students finish degrees faster.

What made this work was the founder solving their own problem. They dropped out of traditional college, designed and completed an accredited degree using this exact approach, then built a platform to help others do the same.

The traction validated the approach. Six-figure revenue run rate with high retention from repeat users. Early team already in place showing ability to delegate and scale beyond solo work.

Most importantly, they showed realism about valuation and stage. Smart and driven but not caught up in hype. The ask matched the current traction rather than projected future potential.

An added factor: they run other cash-flowing ventures that provide diversified income. This creates runway without burning through raised capital, reducing pressure to scale prematurely.

The combination of proven traction, founder-market fit, and realistic expectations made this a yes.

𝐅𝐨𝐮𝐧𝐝𝐞𝐫 𝐁: 𝐍𝐨 ❌  

This founder's clean-label wellness beverage targets mood, focus, and hydration. The product sold out its initial presale and showed early DTC momentum with influencer strategy development underway.

The energy was immediately apparent. This is someone who walks into rooms and commands attention. That kind of presence matters in CPG where brand personality drives purchasing decisions.

The product-market excitement was real. Early customers were responding, and the hustle to make the brand stand out was evident in every conversation.

The disconnect came down to valuation expectations versus current stage. The ask was priced for traction that hadn't materialized yet. We couldn't bridge the gap between early presale success and the terms being proposed.

This isn't a quality issue - it's a timing and pricing issue. If they build more proof points and reset expectations to match current metrics, this becomes a different conversation. This is why I said not yet.

𝐌𝐲 𝐑𝐮𝐛𝐫𝐢𝐤

𝐀 𝐯𝐢𝐬𝐮𝐚𝐥 𝐛𝐫𝐞𝐚𝐤𝐝𝐨𝐰𝐧 𝐨𝐟 𝐤𝐞𝐲 𝐟𝐚𝐜𝐭𝐨𝐫𝐬 𝐢𝐧 𝐦𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧

𝐄𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐫𝐧𝐞𝐫

𝐐: 𝐖𝐡𝐚𝐭 𝐬𝐞𝐩𝐚𝐫𝐚𝐭𝐞𝐬 𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐰𝐡𝐨 𝐠𝐞𝐭 𝐟𝐮𝐧𝐝𝐞𝐝 𝐟𝐫𝐨𝐦 𝐭𝐡𝐨𝐬𝐞 𝐰𝐡𝐨 𝐝𝐨𝐧'𝐭?

The difference isn't always talent - it's clarity. Founders with clear eyes about where they are today and what they need to get to tomorrow close deals. Those pricing for where they want to be eventually create friction that stalls momentum.

A clear capital plan shows you understand the path from current stage to next milestone. What specific metrics will the capital help you hit? How does that justify the next round's valuation? Vague answers about "growth" or "scale" don't build confidence.

I back bold, creative founders unafraid to try new paths. But they need to pair that ambition with realism about capital deployment and current stage. The best fundraisers aren't the most optimistic - they're the most precise about what money buys and when.

𝐇𝐨𝐰 𝐓𝐡𝐞𝐬𝐞 𝐃𝐞𝐚𝐥𝐬 𝐖𝐨𝐫𝐤

Both investments use Crowdsurf's HoldCo structure - instead of investing in a single company, you invest in an entity that encompasses the individual's career over 15 years.

You receive distributions from everything they create: current ventures, future companies, consulting income, and other opportunities above a set threshold. The founder keeps full ownership and control of their work while sharing a percentage of total upside with early backers.

👉 Apply to see private Crowdsurf deals

𝐂𝐥𝐨𝐬𝐢𝐧𝐠 𝐓𝐡𝐨𝐮𝐠𝐡𝐭𝐬

Early-stage investing isn't about finding perfect founders - it's about finding realistic ones. The best often know exactly what they've proven and what they still need to prove.

Valuation mismatches kill more deals than bad ideas or weak execution. When founders price themselves out of range, everyone loses. They don't get capital. Investors miss backing talented people. Momentum stalls.

The ledger entry is clear: back founders who price for proof, not potential.

Auditing more talent next week,
Will Stringer

𝐅𝐞𝐞𝐝𝐛𝐚𝐜𝐤

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