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 

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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

Thejo Kote, founder and CEO of Airbase, has built an impressive track record as a serial entrepreneur. From co-founding Automatic (acquired by SiriusXM) to raising $60M in just 10 days for Airbase's Series B, his journey is marked by innovation and resilience. Thejo shares valuable insights on navigating the uncertainties of startup life, making quick decisions with imperfect data, and the importance of embracing the gray areas to drive growth. His story is a testament to the power of entrepreneurship and the impact of bold, fast-paced action. Our thanks to Thejo for letting us spotlight his journey: https://lnkd.in/gVPnDfTk

If you see more Carta data in your favorite media outlets, just know how grateful we are to contribute to these important conversations about the venture capital ecosystem—its past, present, and future. And if you've been focused on other major news this week ... may we suggest a little weekend reading? 👀📰 The Wall Street Journal: https://lnkd.in/gaNnUufh Bloomberg News: https://lnkd.in/gP4_CH5D Financial Times: https://lnkd.in/emsXcv9R Axios: https://lnkd.in/ddSjxUf7 Catch up on our latest report cited in these publications ⤵ VC Fund Performance: https://lnkd.in/gYrJ_mSq

Handling equity can be tricky, especially when you’re trying to balance maximizing benefits for your employees with growing your business. Concepts like vesting and cliffs, ISOs versus NSOs, or when to switch to RSUs are all basic considerations covered by companies when setting up an equity plan. But what else should founders consider? On August 29th at 10am PT / 1pm ET, we'll go beyond the basics and dive deeper into QSBS tax breaks, 409A valuations, and how employee equity is taxed. Considering employee finances today could improve retention rates, and bottom lines, in the future. ✍ A chance to learn from the Carta team 👇 ▶ Anthony Cimino, head of policy ▶ Shelby Skoczylas, CPA, manager, equity advisory ▶ Kristoffer Warren, CAIA, technical senior manager, valuations Register now: https://lnkd.in/dWjNuCWy