Peter Walker, Carta’s Head of Insights and Chief (Data) Storyteller joins The Look Back to share insights on the current state of fundraising, VC trends and building the best path toward growth.
Mar 11, 2025
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Peter Walker, Head of Insights at Carta, shares his expertise on fundraising and venture capital alongside Bobby Napiltonia, Managing Partner at The GTM Firm. They discuss the evolving landscape of fundraising, emphasizing the importance of data analysis and the rise of AI startups. The duo highlights the shift towards fractional roles in startups for increased flexibility, and how team dynamics now outweigh traditional metrics in funding decisions. They humorously explore how AI can innovate traditional businesses and reflect on the importance of learning from failures in the startup ecosystem.
Startups today are diversifying funding strategies by focusing on capital efficiency and leveraging technology to meet customer needs.
Recent trends indicate that underrepresented founders are facing declining support as venture capital increasingly favors established entrepreneurs.
Deep dives
The Evolving Landscape of Funding
Startups today face a shifting funding landscape, particularly in the context of emerging industries like AI. Founders are securing higher rates of funding and valuations, demonstrating that the definition of an 'AI company' is broadening. This includes both companies building foundational AI models and those simply integrating AI into existing workflows to solve industry-specific problems. The importance of leveraging technology to address genuine customer needs is emphasized, suggesting that startups do not need to be advanced AI research firms to attract investment.
Startups and Capital Efficiency
Recent trends indicate that startups are increasingly focusing on capital efficiency, leading to a decrease in the number of employees at early funding stages. For instance, companies raising Series A funding now typically have fewer employees, reflecting a shift towards bigger funding rounds with constrained team sizes. This change is attributed not only to the impact of AI but also to a general reduction in fundraising activity. The emphasis on automation is seen as a driving factor behind this trend, as startups streamline their operations without increasing headcounts.
Diversity and the Funding Ecosystem
Despite ongoing discussions surrounding diversity in the startup ecosystem, recent data reveals a decline in funding for underrepresented founders. As venture capital becomes more risk-averse, investors tend to favor repeat founders, who are often from more traditional backgrounds. This focus on proven entrepreneurs is posited as a contributing factor to the slower growth among diverse founders, highlighting an ongoing challenge in achieving equity in startup funding. New strategies to support diverse talent and provide access to early-stage capital are deemed essential for fostering an inclusive entrepreneurial environment.
Navigating Challenges as a First-Time Founder
First-time founders are advised to be prepared for the inherent unfairness in the venture capital landscape, where differential access to funding is often dictated by personal connections rather than metrics. The importance of co-founder selection is stressed, as founders should invest time in choosing partners who align with their vision and operational goals. Furthermore, establishing clear co-founder agreements and vesting schedules is recommended to mitigate risks associated with stake dilution. Overall, the focus should be on building a robust support structure that includes both human resources and strategic financial planning.
For Founders and Funders and those supporting the startup ecosystem, this episode was a kool convo around all things fundraising, founder journey, cap tables, dilution and more.
For the chat with Peter of Carta, I am joined by Startup Guru Bobby Napiltonia, the Managing Partner @TheGTMFirm and former head of the AppExchange at @Salesforce and @Twilio’s first CRO. See https://www.thegtmfirm.com/
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