Carta Shares Update on State of Private Markets for Q1 2023

Every quarter, Carta releases information on the startup ecosystem in their comprehensive State of Private Markets report.

It can take a few weeks for rounds to be recorded on their platform, so they share a full analysis after they get the final numbers, Carta notes in a blog post.

However, they also release a “first cut” of data “as close to the end of the quarter as possible.”

Carta reminds clients that again, the Q1 numbers “will shift somewhat as more rounds get recorded on the Carta platform, but they hope these metrics can be guideposts for people raising rounds in the coming days.”

Here’s how Q1 Performed:

In early-stage venture, it looks as though valuations “have slightly recovered from recent lows.”

Series A, B, and C companies “saw slightly higher valuations in Q1 2023 than in Q4 2022.”

Companies raising Series D rounds and beyond “continued to see valuations fall. And round sizes have shrunk across the board, “meaning founders are being asked to make do with less capital.”

Carta says it will publish their full set of quarterly data next month (in May 2023). You can sign up for their Data Minute newsletter to receive the full data.

In another recent update, the firm noted that on Wednesday, April 19, Carta CEO Henry Ward testified before the House Financial Services Committee on “the importance of the private markets to the innovation economy—and the critical role that venture-backed companies play in maintaining America’s technological edge.”

In his opening remarks to the committee, Ward touched on “the need to modernize the laws governing private market regulation to better support entrepreneurs and to provide more opportunities for more investors to gain exposure to private-market assets, including equity in VC-backed companies.”

As noted in the update shared by Carta, the collapse of Silicon Valley Bank (SVB) has brought “into sharp relief the importance of the venture ecosystem and its interconnectedness to the broader economy.”

Growth- stage companies and the funds that back them “create jobs, provide important products and services, and drive the next chapter of innovation and economic growth.”

Put simply, the venture ecosystem “is America’s innovation engine, and it is important that we continue to invest in and support the entrepreneurs, investors, and employees that drive it forward.”

For more details on this update, check here.

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