Carta

Our VC Fund Performance report is out now. It’s the very first report of its kind that we’ve released. In it, we analyze aggregated and anonymized metrics from 1,803 venture funds currently using Carta Fund Administration. In this era of heightened competition amongst fund managers, our hope is that this report gives you better data to secure funding from LPs. Here are a few highlights ⤵️ ▪️ Funds in the 2022 vintage have deployed about 43% of their committed capital at the 24 month mark, the lowest share of any analyzed vintage (2017-2022). Prior vintages ranged from 47%-60% after 24 months.    ▪️ 30.6% of companies that raised a seed round in Q1 2018 made it to Series A within two years. Only 15.4% of Q1 2022 seed startups did so in the same timeframe. ▪️ Less than 10% of 2021 funds have distributed any capital back to their LPs after 3 years, as measured by DPI (distributed to paid-in capital).  These insights offer a snapshot of where the market is and where it might be headed. To see our analysis of fund performance metrics—such as IRR, TVPI, and DPI by fund vintage year, check out the full report: https://lnkd.in/gC2E6KR2 

The velocity of capital deployment has slowed quite a bit, particularly when comparing recent fund vintages. According to our VC Fund Performance report, cumulative capital deployment after 24 months dropped from 60% for the 2020 vintage to 43% for the 2022 vintage. This decline reflects a broader trend: investors are pumping the brakes on capital deployment as the private market continues its reset. With a slowing economy and greater market uncertainty, we're seeing more cautious investment strategies. For founders, this means longer timelines to secure capital, while investors are taking more time to evaluate opportunities. What are your thoughts on this shift? Is it a temporary slowdown or the new normal? #PrivateMarkets #VentureCapital #StartupFunding #CartaData #InvestmentTrends

We couldn’t be more excited to see this in Times Square! 🌆🚕 A huge thank you to our friends at Ramp for the epic shoutout. We’re proud to be setting the new standard for private fund management and grateful to have partners like Ramp by our side. 💫 Moments like this remind us how important collaboration is in driving the future of private markets. Here’s to continuing the journey together! 🫶

Over the past several years, the landscape of pre-seed rounds has transformed significantly. A dozen years ago, the concept of a SAFE (Simple Agreement for Future Equity) didn’t even exist—convertible notes were the norm for early fundraising. Today, SAFEs dominate the pre-seed market. In Q2 2024, 88% of all pre-seed deals on Carta were SAFEs, while only 12% were convertible notes—the largest quarterly split we've seen to date. This shift has significant implications for both early-stage founders and investors. SAFEs and convertible notes differ in structure and terms, which can have major financial consequences when startups eventually raise priced rounds. Carta’s Q2 report leverages data from over 100,000 funding events tracked since January 2020, offering a comprehensive look at these changes. ✍ Key insights from Q2 2024: ⚫ Pre-seed rounds are shrinking. 73% of all pre-priced funding events in Q2 were less than $1 million, the highest rate in over three years.    ⚫ 84% of SAFEs were post-money in Q2, giving investors a fixed ownership percentage, compared to just 19% of convertible notes. ⚫ New Jersey startups raised 10.77% of all pre-seed capital from Q3 2023 through Q2 2024, compared to only 2.44% in priced rounds during the same period. For early-stage founders, understanding these trends is crucial. Carta Launch offers *free access* to our cap-table platform, along with tools to easily create and fund SAFEs, helping you navigate your own fundraising journey with confidence. Explore the full report for more insights, including comparative data on valuation caps, check sizes, and industry maps. 🔗 https://lnkd.in/gphcFeQg #PreSeed #StartupFunding #VentureCapital #SAFEs #Founders

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Trying to stay up to date on the state of VC? For the first time ever, we've released aggregated and anonymized performance data for VC funds. This report will be a game-changer in terms of benchmarking key metrics like IRR, TVPI, and DPI. On September 12 @ 10am PT/ 1pm ET, Peter Walker will dive into this data with Elizabeth "Beezer" Clarkson, Partner at Sapphire Partners. They'll discuss: ✅ How these metrics can influence LP conversations ✅ What the current state of VC fundraising means for the rest of 2024 ✅ Strategies for emerging managers to secure LP commitments using hard data and strategic insights Register here: https://lnkd.in/ggzEFRUC

🌟 Serving Up Connections: A Smash-Hit Week in VC 🌟 This week, we had a ball hosting three amazing events that brought founders, VCs, LPs, and GPs together for some ace networking and insight-sharing. 🎾 🏓 Founder + VC Squash Night | Co-hosted with Chai Ventures and Citizens   We partnered with Alex Chung from Chai Ventures and Theron McCollough from Citizens Bank to rally founders and VCs in NYC for a squash night that served up meaningful connections too! 🍽️ VC Platform Dinner | Co-hosted with Deel   Our VC Platform Dinner, co-hosted with Deel, was a real recipe for success. Alongside partners like Forum Ventures, Alumni Ventures, and XRC Ventures, we dished out insights on how to help their portfolio companies grow. Allie Mullen, director at Wireframe Ventures, also shared her secret sauce for building the VC platform community, #SoYouWantToWorkInPlatform. 🍷 LP/GP Dinner | Co-hosted with Five Two Five We capped off the week by hosting 20 LPs and GPs for a delicious dinner in NYC curated by first-time fund manager, Jason Scott of Five Two Five Ventures. A big thank you to everyone who joined us this week! #NYC #VC #FTFM #FundManager #GP #LP

Can you judge a fund by its vintage year? The charts here depict the median internal rate of return (IRR) for funds by vintage year, and the differences are striking. Funds from 2017 and 2018 have performed well, with IRRs climbing steadily, even as market conditions fluctuate. However, funds from more recent vintages, particularly 2021 and 2022, tell a different story. At the three-year mark, vintage 2019 funds had a median IRR of 19.4%. In contrast, vintage 2021 funds have struggled to even break into positive territory after three years, reflecting the challenges of launching a fund just as venture-backed valuations began to decline in late 2022. This trend underscores the importance of timing in the lifecycle of a fund. Keep in mind that the 2021 and 2022 vintages are still in the early stages of their life cycles. It will take several more years before we can fully assess their performance. However, at this point, they fall short compared to their slightly older counterparts. While past vintages had the benefit of rising valuations, newer funds must now navigate a more volatile environment. The question remains: will the 2021 and 2022 vintages recover, or are these lower outcomes here to stay? #VentureCapital #FundPerformance #IRR #CartaData

As a founder, it’s crucial to develop your board management skills and foster trust. Given current fundraising challenges, it’s more important than ever to make sure your voice is heard and resonates positively with your board. Join our session on September 4th at 11am PT / 2pm ET to hear from this panel that have been on both sides of conference table: Henry Ward, CEO of Carta, Edward Norton, co-founder and Chief Strategy Officer of Zeck, and Katie Jacobs Stanton, founder and General Partner of Moxxie Ventures and board member for Vivendi and Yahoo. This event will cover: ⏩️ Understanding board composition ⏩️ Mastering board communication ⏩️ Building strong relationships ⏩️ Leveraging technology Don't miss the chance to strengthen your board communication skills: https://lnkd.in/gF2ssx7h