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 

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

Executing legal agreements for your LLC just got easier. With our new agreement execution tool, you can manage everything—from drafting to signing (yes, even spousal consents)—on one platform. Whether you’re sending one or one hundred interest agreements, membership transfers, or other important documents, Carta’s tool helps you streamline the process, reduces back-and-forth and saves you time. Learn more about how we’re simplifying legal documents for LLCs: https://lnkd.in/dWjfMuyy #LLC #LegalTech #Startups #PrivateEquity

Should check size dictate a VC's strategy? For Charles Hudson and his firm, Precursor Ventures, he's focused on access to great companies over a specific check size. Find out more about his approach to VC in the latest episode of The Data Minute podcast. From pre-seed deals to the dynamics of multi-stage vs. small funds, and navigating the AI-dominated market, this episode covers it all. Charles also shares insights on SAFEs, the evolution of pre-seed investing, and how Washington's policies impact emerging managers. Tune in to make sure you don’t miss a minute 🎧 Full episode l!nk in bi0. #VC #FundStrategy #Preseed #StartupInvesting #PrecursorVentures

Startup hiring is down year-over-year and venture capital is (still) hard to come by. It's the perfect time to talk to Darcy Casarella who advises many startup founders at New Enterprise Associates (NEA). Listen to find out why Darcy suggests that startups continue to keep a careful eye on managing their runway into 2025. 💡 Clip is from The Data Minute podcast hosted by Peter Walker—available to stream on all podcast platforms. #startupfundraising #venturecapital #postpandemic #NEA #cartadata