Kingscrowd Capital Launches Fund Focused on Profitable Private Companies with Shorter Exit Timelines

New fund applies proprietary private market data to identify already-profitable startups

Kingscrowd Capital announced the Kingscrowd Capital Profitability Fund, focused on profitable private companies with the forecasted goal of 3–6 year liquidity outcomes.

The fund launches as companies stay private longer in recent decades. The average time to IPO has increased from 4.5 years in 2000 to more than 12 years in 2020. Over the same period, the number of publicly listed U.S. companies declined 38%. Longer capital cycles can translate into longer holding periods and greater outcome uncertainty for investors.

“Equity crowdfunding and modern private market access have created a growing universe of profitable companies raising capital,” said Chris Lustrino, Founder and CEO of Kingscrowd. “These companies exist. They’re raising capital. Until now, there hasn’t been a systematic way to identify and invest in them at scale.”

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The Kingscrowd Capital Profitability Fund plans to invest in approximately 25 to 30 companies over the next four to five years. Portfolio companies must demonstrate positive net income over the prior two fiscal years, at least $1 million in annual revenue with year-over-year growth, revenue multiples below 7.5x, and a minimum 3.0-star rating from Kingscrowd’s proprietary scoring algorithm.

Market Outcomes:
The fund’s strategy reflects patterns already visible across equity crowdfunding and online private investing.

LMNT, the electrolyte beverage company, raised through Regulation CF while already profitable. In its 2023 audited Reg CF annual report, LMNT reported $206.3M in net sales and $41.9M in net income.

ConsumerDirect, a mortgage technology company, raised at a $151 million valuation in 2024 while profitable. About a year later, the company raised again at a $500 million valuation and has indicated plans to pursue a public listing.

Proprietary
The fund is powered by Kingscrowd’s proprietary private market database, which tracks financial statements and hundreds of data points across thousands of private companies raising capital annually through online platforms. This infrastructure enables systematic screening for profitability and valuation metrics that would otherwise require manual review of individual SEC filings across more than 100 marketplaces.

“We track real financial statements across thousands of private raises each year,” Lustrino said. “That’s how we identify the profitable companies for the fund.”

Fund Structure:
The Kingscrowd Capital Profitability Fund targets up to $5 million in committed capital, with a minimum investment of $10,000. The fund charges a 1% management fee and 5% carried interest. These economics reflect the fund’s focus on profitable companies and a shorter target holding period. Target timelines are not guarantees; exits depend on market conditions and company performance.

“Fee structures should align with underlying risk and time horizons,” he added. “This fund was designed to do exactly that.”

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