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 

🚨 𝟮𝟬𝟮𝟰 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗢𝘂𝘁𝗹𝗼𝗼𝗸: 𝗧𝗮𝘅    No matter the election outcome, policymakers will focus on tax policy. The innovation ecosystem stands at a crossroads, and Carta's latest Election Outlook reveals how the 2024 election will reshape U.S. tax policy. ⏰ 𝗧𝗖𝗝𝗔 𝗘𝘅𝗽𝗶𝗿𝗮𝘁𝗶𝗼𝗻: The clock is ticking on the Tax Cuts and Jobs Act of 2017 and without action, we're facing $4+ trillion in tax increases by 2026.   💡 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗮𝘁 𝗦𝘁𝗮𝗸𝗲: Potential changes to the Qualified Small Business Stock (QSBS) tax credit, carried interest, and R&D expensing could significantly affect startups and investors.   🇺🇸 𝗣𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗗𝗶𝘃𝗶𝗱𝗲: Republicans will focus on economic growth through a TCJA expansion, whereas Democrats will advocate for tax "fairness" by pushing for higher rates for top earners and corporations   🃏 𝗪𝗶𝗹𝗱 𝗖𝗮𝗿𝗱𝘀: New faces in Congress, leadership changes, and razor-thin margins complicate tax reform efforts.   What will this mean for tax policy for the innovation economy? Find out in Carta’s latest Election Outlook: Tax. The brief will cover key aspects of the coming debate, including: • Politics of tax reform • Process considerations • Expiring TCJA provisions and tax policies that will impact the innovation economy • What to expect based on potential election scenarios   #Election2024 #TaxPolicy #Innovation #Startups #VentureCapital

Is employee ownership expanding in private equity? Dive into the latest trends with our 2024 PE Ownership Report. Highlights: 🔹 The number of employee stakeholders on Carta has increased 172% since 2019, but the growth rate has slowed since 2022. 🔹 While most PE-backed companies have at least one employee equity owner, only about 20% have over 100. 🔹 PE-backed LLCs are increasingly issuing profits interest units (PIUs), particularly to employees, as a tool for equity sharing. Our data comes from thousands of PE-backed companies, providing an in-depth look at whether ownership structures are changing in private equity. #PrivateEquity #OwnershipTrends #CartaData #EmployeeOwnership

Thrilled to share Carta is on the Fortune Best Large Workplaces in Financial Services and Insurance for 2024 🏆 Fortune decides who makes the list based on data from an employee survey which analyzed shared employee experiences. Shoutout to our Cartans and our customers for making us an ✨ award winning ✨ workplace.

Gearing up for SaaStr Annual 2024, and we’ve got a lot in store for you! 🚀 Join us for some great conversations and networking opportunities: 🎤 Don’t miss our sessions: - AMA: CRO Confidential with our CRO, Jeff Perry, and Brendon Cassidy, Founder of HiFive, on Wednesday, September 11, 1:00-1:25 PM, Outdoor Theatre. - If you can’t beat em, join em: considerations for marketers in the age of AI with our CMO, Nicole Baer, on Wednesday, September 11, 2:00-2:10 PM, Partner Stage. 🍪 Stop by booth SG205 for a sweet treat! Take a photo and watch it transform into a custom cookie, or grab a pair of our signature Carta socks. While you’re there, chat with our team about how Carta is helping companies scale and succeed. We can’t wait to connect with founders, investors, and SaaS leaders who are as passionate about growth as we are. See you at SaaStr! #SaaStrAnnual

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

Join Carta’s Policy Team for our monthly roundup of the key policy updates impacting the innovation economy.

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