Today, I’m glad to have Peter Walker share insights on The VC Corner.
Peter is Head of Insights at Carta and runs The Data Minute, a weekly newsletter featuring the most striking data from 43,000 startups.
1. Introduction
Appreciate the guest stage!
Let’s jump into a question we get all the time at Carta - how much of my company should I sell in each venture round?
All data below comes from the 43,000+ companies using Carta as their cap table platform today. US data only.
2. Dilution Dynamics in Early-Stage Rounds
Dilution starts (even though it may not feel this way) with the SAFE round.
Lots of founders are using SAFEs to raise their initial $500K…or $1M…or $5M. It’s much more common than it used to be.
But if those SAFEs are all post-money, the dilution adds up quickly. Founders should be wary of stacking too many SAFEs on each other as they come with anti-dilution effects for investors.
3. Trends in Founder Equity Sales
Alright, on to the priced equity.
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4. Challenges in the Fundraising Market
5. Impact of Bridge Financings on Dilution
6. Importance of Deal Terms
7. Conclusion