Carta Data Reveals Modest Increases in Median Valuation and Round Size Across US Venture Ecosystem

Carta has released their First Cut—State of Private Markets: Q2 2024.

Initial data from Q2 2024 reportedly “shows modest increases in median valuation and round size across much of the U.S. venture ecosystem.”

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

Carta explains that it can take a few weeks for rounds to be recorded on their platform, so they release a full analysis after they get the final numbers.

In the meantime, Carta shared a “first cut” of data as close to the end of the quarter as possible.

This initial analysis focuses on round valuations and cash raised across the venture stages.

Here’s a preliminary look at Q2 data for U.S. startups:

  • Mostly modest valuation increases: Median pre-money valuations ticked upward at most venture stages, while Series D and E+ saw rapid increases (on very low volume).
  • Round size consolidation: The median amount of cash raised was about level from seed through Series C after rising from recent nadirs in 2023.

Although the final numbers on total rounds and capital raised are not yet available for Q2, it looks like “overall fundraising will be only slightly higher than it was in Q1.”

Carta will release their full set of quarterly data in the coming weeks.

As covered, Carta claims that it is “trusted by more than 40,000 companies and over two million people in nearly 160 countries to manage cap tables, compensation, and valuations.”

Carta also says that it supports “nearly 7,000 funds and SPVs, and represents nearly $130B in assets under administration.”

Today, Carta’s platform manages “nearly three trillion dollars in equity globally.”

Companies and funds like Flexport, Tribe, and Harlem Capital build their businesses on Carta.

As reported in May 2024, Carta released their State of Private Markets: Q1 2024 report.

Carta notes that the venture capital fundraising market “remained slow in Q1 2024, but valuations held steady or climbed at almost every stage.”

Carta also mentions that the startup fundraising market “got off to a cautious start in 2024.”

At current count, companies on Carta had “closed 1,064 new funding rounds during the first quarter of the year, down 29% compared with the prior quarter.”

The decline was sharpest at the early stages of “the venture lifecycle: Deal count fell by 33% at the seed stage in Q1 and 36% at Series A.”

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