A Product Market Fit Show | Startup Podcast for Founders

VC funding is not popping back. THIS is the new normal—here's how to adjust. | Peter Walker, Head of Insights at Carta

Nov 8, 2024

Peter Walker, Head of Insights at Carta, dives into the current fundraising landscape affecting startups. He discusses why founders shouldn't expect a return to 2021's funding climate and the impact of increased competition. Peter also reveals fascinating insights on the professionalization of the startup ecosystem, the shift in valuation expectations, and the trend towards longer vesting for founders. Learn about the rise of emerging VC hubs and the evolving mindset among entrepreneurs toward sustainable growth in challenging conditions.

41:57

Episode guests

Peter Walker

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Founders must adapt to a competitive fundraising environment, recognizing that conditions won't return to the easy capital days of 2021.

The increasing trend of acquisitions signals a demand for liquidity, but many exits may arise from financial pressures rather than growth opportunities.

Deep dives

Impact of Co-Founder Departure

When a co-founder leaves a startup with a significant share before the seed stage, it complicates the venture capital fundraising process. This departure can drastically alter the cap table, making the remaining founders less attractive to potential investors. Maintaining a balanced equity distribution is essential for sustaining investor interest and ensuring the startup remains viable for fundraising efforts. Thus, protecting equity and having clear vesting agreements is crucial for the long-term health of a company.

Intro

2min

Navigating the New Normal of Venture Capital

8min

Navigating Startup Challenges and the Reality of Exits

2min

Navigating Startup Valuations and Fundraising Challenges

10min

Navigating Pre-Seed Expectations

8min

Emerging VC Hubs and Startup Mindsets

6min

Rethinking Venture Capital Success

7min

Q3 startup data just dropped. We chat with Peter Walker, Head of Insights at Carta about valuations at pre-seed, seed and Series A. Why the current fundraising environment is the new normal and not about to get much better. We also talk about trends in founder vesting, and why some founders are choosing to vest for longer.

Finally, we go through what to do if you’re stuck with some product-market fit but mediocre growth, and why more exits are happening now than anytime in the fast couple of years.

Why you should listen

Founders should not expect a return to the fundraising conditions of 2021.
Competition among founders has increased, raising the bar for fundraising.
Many startups are still alive despite challenging conditions, adapting to survive.
Why the professionalization of the startup ecosystem offers more options for founders.
Startup ecosystems are growing in tier two and three cities.
What the one-and-done funding model is and how to use it.

Keywords
State of private markets, early stage funding, SAFEs, startup trends, liquidity, valuations, venture capital, market analysis, fundraising, AI, AI startups, vesting schedules, funding models, startup ecosystems, venture capital

Timestamps
(00:00:00) Intro
(00:01:33) Top Highlights from Q3 Report
(00:04:45) The market won't get any easier
(00:06:13) Two Reasons why the SAFE Boom Could Change Things
(00:12:34) Professionalization of the Industry is a Double Edged Sword
(00:17:44) Rounds that are Leading the Market are as Competitive as Ever
(00:22:36) Vesting Schedules
(00:30:05) Best Location to Raise & the One and Done Method

Send me a message to let me know what you think!

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more