“HR Heretics” | How CPOs, CHROs, Founders, and Boards Build High Performing Companies

The State of Startups in 2023 and 2024: A Conversation with Peter Walker of Carta

Apr 4, 2024

Peter Walker, Head of Insights at Carta, discusses startup compensation trends in 2023, VC challenges in 2024, honesty in HR around equity structures, and advice for evaluating startup offers with an investor mindset.

44:48

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Peter Walker

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Quick takeaways

Startups in 2023 faced challenges in securing VC funding with minimal deployment impacting founders' expectations.

2023 saw a shift in investment towards early-stage startups while late-stage funding decreased, signaling a market focus shift.

Deep dives

VC Capital Deployment in 2023

VCs have committed significant capital, but a large portion remains uninvested, leading to minimal deployment for startups in 2023 compared to previous years. The delay in investment impacts founders who anticipate the deployment of committed capital but may face challenges due to diversions towards existing startups and different investment avenues.

Introduction

3min

Capital Distribution Shift towards Early-Stage Ventures

5min

Analysis of Startup Shutdowns in 2023 and January 2024

2min

Outlook for Startups in 2024 and M&A Market Analysis

5min

Startup Hiring Trends and Venture Capital Investment Outlook

8min

Deciphering Startup Equity and Liquidation Preferences

22min

In this episode of HR Heretics, Nolan and Kelli chat all things “data from Carta” with Peter Walker, Head of Insights and Data Storytelling at Carta.

They discuss Carta’s comprehensive report on startup compensation trends in H2 of 2023 influencing the flow of “dry powder” and the alarming increase in startup shutdowns. Peter proves VC’s will have less leeway in 2024 to throw good money after bad forecasting an even tougher year ahead.

The team also discuss honesty in HR around equity structures, including liquidation preferences, and Peter offers advice for job candidates on evaluating startup offers with an investor's mindset.

HR Heretics is a podcast from Turpentine.

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This episode is brought to you by AttioAttio is the next generation of CRM. It’s powerful, flexible and easily configures to the unique way your startup runs, whatever your go-to-market motion. The next era deserves a better CRM. Join OpenAI, Replicate, ElevenLabs and more at https://bit.ly/AttioHRHeretics

KEEP UP WITH PETER, NOLAN, + KELLI ON LINKEDIN

Peter: https://www.linkedin.com/in/peterjameswalker/

Nolan: https://www.linkedin.com/in/nolan-church/

Kelli: https://www.linkedin.com/in/kellidragovich/

TIMESTAMPS:

(00:00) Intro: Peter Walker and Startup Compensation Trends

(00:39) VC in 2023: Dry Powder and Capital Deployment

(03:02) 2023's Investment Distribution: Early vs. Late Stage

(07:43) Startup Shutdowns and Future Predictions

(11.13) Sponsor Ad: Attio CRM

(12:09) The M&A Market for Startups

(15:05) The Impact of the Economic Shift on Startup Hiring and Industry Trends

(21:59) Job Offers in Today's Market

(22.30) Valuations and Equity in Job Negotiations

(24:07) Key Questions Candidates Should Ask About Equity

(25:34) Understanding Equity and Liquidation Preferences

(27:59) Transparency in Startup Equity

(30:17) Educational Resources and Support for Job Candidates

(34:22) Options vs. RSUs in Late-Stage Companies

(37:35) Startup Compensation

(41:21) The Equity Dilemma: Exercising Options and Market Realities

(42:32) Post termination Exercise Window

(43:49) Wrap

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit hrheretics.substack.com

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