Equity Crowdfunding, Angel Investing, and Valuation Mistakes Founders Make - Karen Rands

Equity crowdfunding and angel investing have changed how capital is raised - but many founders and investors still misunderstand valuation, risk, and what it really takes to build long-term wealth.

In this episode of Behind The Numbers With Dave Bookbinder, Dave Bookbinder is joined by Karen Rands, President of Cougar Capital Holdings, host of The Compassionate Capitalist Show, and author of two books on angel and crowdfunding investing.

Karen shares her journey from corporate leadership at IBM to building and leading a nationally recognized angel investor group, and why she’s dedicated her career to democratizing access to private investing. She explains how the JOBS Act opened the door to equity crowdfunding and why that shift matters for entrepreneurs, investors, and wealth creation beyond public markets.

Dave and Karen unpack the differences between traditional venture capital and what Karen calls “compassionate capitalism,” along with the valuation mistakes founders commonly make when raising capital. They explore underutilized valuation metrics, realistic financial planning, and how misaligned expectations can derail otherwise promising capital raises.

The conversation also breaks down the four primary types of equity crowdfunding - Reg CF, Reg D, Reg A+, and state exemptions - with practical guidance for both founders seeking capital and everyday investors looking to build diversified private-investment portfolios. Karen shares disciplined portfolio-building strategies and actionable first steps for newcomers interested in angel or crowdfund investing.

This episode is a must-listen for business owners, founders, managers, and advisors who want a clearer understanding of valuation, capital formation, and smarter ways to participate in private markets.

About Our Guest:

Karen Rands is a leading voice in democratization of capital from private investors funding innovation and small business expansion — empowering individuals to create wealth by investing in entrepreneurs who are changing the world. She is leading the way with The Compassionate Capitalist Movement. Karen is the author of the best-seller Inside Secrets to Angel Investing: Step-by-Step Strategies to Leverage Private Equity Investment for Passive Wealth Creation.

Her latest release, 2nd in the series, debuted as a Top Release on Amazon: Inside Secrets to Crowdfund Investing. Follow Jane’s Journey: See How a New Generation Builds Wealth with Purpose, Passion and Profit. She hosts a top 100 Business Podcast on Apple, The Compassionate Capitalist™ Show, where she interviews founders, investors, and thought leaders on best practices for wealth creation as a successful entrepreneur or investor in successful small businesses.

Karen has spent over two decades bridging the gap between investors and innovators from her corporate days at IBM to her time spent managing a top ranked angel investor group, and now as a speaker, strategist, and educator.

Click to go to Karen's LinkTree - http://bit.ly/linkCCS for links to social, free gifts, books, course, podcast, socials and to schedule a chat directly

About the Host:

Dave Bookbinder is known as an expert in business valuation and he is the person that business owners and entrepreneurs reach out to when they need to know what their most important assets are worth. Known as a collaborative adviser, Dave has served thousands of client companies of all sizes and industries. 

 

Dave is the author of two #1 best-selling books about the impact of human capital (PEOPLE!) on the valuation of a business enterprise called The NEW ROI: Return On Individuals & The NEW ROI: Going Behind The Numbers. 

 

He’s on a mission to change the conversation about how the accounting world recognizes the value of people’s contributions to a business enterprise, and to quantify what every CEO on the planet claims: “Our people are this company’s most valuable asset.”

Dave’s book, A Valuation Toolbox for Business Owners and Their Advisors: Things Every Business Owner Should Know, was recognized as a top new release in Business and Valuation and is designed to provide practical insights and tools to help understand what really drives business value, how to prepare for an exit, and just make better decisions.

He’s also the host of the highly rated Behind The Numbers With Dave Bookbinder busi