Carta

🌍 Carta and Deel Partner to Automate Global Equity Compliance 🚀 We're thrilled to announce our partnership with Deel, bringing automated global equity compliance to startups worldwide. This new API integration allows companies using Carta and Deel to seamlessly sync equity events, calculate taxes, and handle payments across multiple jurisdictions. This integration also improves the employee experience by allowing option exercises in local currencies.

Are startups still hiring? How is salary trending across private startups? What about equity? We get a lot of questions from founders, CFOs, and other hiring decision makers about compensation trends. So, in this week’s solo episode of The Data Minute, Peter Walker uses five charts to answer five questions about startup compensation. This data is from our recently released State of Startup Compensation report. It’s a deep dive into hiring, layoffs, and compensation trends for the 43,000 startups that use Carta. Watch this episode so you can follow along with the charts being shared: https://lnkd.in/gUdMZ-98 💡 Subscribe to get new episodes every other week.

Mark your calendar for a Monday deep dive into the latest private market data ✍️

It’s taking longer than ever to raise a Series B. In the first quarter of 2024, the median time between a company’s Series A and its Series B extended to about 27 months—the longest interval in the past 5 years. Kahuna Workforce Solutions, a Houston-based company that builds operational skills and competency management software, raised its Series B despite these tough conditions. The $21M round was led by Resolve Growth Partners. CEO and co-founder Jai Shah shared insights into the company’s fundraising journey and how they navigated the current market conditions. Link in comments. We cover: ✔ Raising in dramatically different macro conditions (Series A in 2019 vs. Series B in 2023) ✔ Why tough diligence is a good sign  ✔ Balancing current stakeholder needs in later rounds  ✔ Negotiating *before* term sheets, not after  ✔ Finding the perfect match for lead investor Congrats to Shai and the entire Kahuna Workforce team on your Series B!

What is the Corporate Transparency Act? Under the new Corporate Transparency Act, most small businesses operating in the US are required to report new information to the government. In the latest episode of Startup Essentials, we’re breaking down everything you need to know—what the Corporate Transparency Act is, who needs to comply with it, what info you need to send and who to send it to, and major deadlines. Watch now: https://lnkd.in/gW-R6G5k #CTA #BOI #FinCEN

In 2019, I wrote about how we’d transform fund administration through event based accounting. I’ve been humbled by the journey so far. What we’ve built today goes beyond an accounting platform. We’re building the platform for fund CFOs to run their firms. I’m excited to share how that original dream has evolved. https://lnkd.in/grxsqVwg

3️⃣ things to know if a PE firm is acquiring your company. ⤵️ 1️⃣  Know how the PE firm plans to accelerate growth or achieve operational efficiency. A PE firm buyer is less likely to be a permanent home, because it will eventually need to exit its investment and realize a gain. 2️⃣ Be aware that your company's capital structure could change, particularly if the PE firm leverages debt as part of the acquisition. This can have the benefit of lowering corporate income through interest deductions, but also requires maintaining sufficient cash flows to meet debt obligations. 3️⃣ Some PE acquisitions lead to changes in management. Acquisition may be a chance for executives to get some liquidity for their holdings in
the target company, while
also getting the chance to benefit from a future exit. There’s a lot of nuance when it comes to private equity and VC M&A deals. To help answer your questions, we worked with our in-house seasoned experts Bernard Lam, Jennie Garzon, Chris Wheeler, and Jackie (Falk) Ammon—who have a combined 40+ years of experience in M&A and help Carta customers navigate these transactions regularly. If you’re interested in learning more about private equity M&A deals and how Carta can help, check out: https://lnkd.in/g5zTVPa7

Q1 2024 saw a recent low for venture deals with just 1,064 new funding rounds—down 29% from the previous quarter. Our latest State of Private Markets Report is out now. ⤵️ 📉 Deal count fell by 33% at the seed stage and 36% at Series A. 🌉 For both seed and Series A, more than 40% of all financings were bridge rounds. Series B wasn’t far behind, at 38%. 💰 Despite the decrease in round count, total cash invested increased slightly reaching $16.3 billion. But when it came to negotiating their valuations, many startups had to settle: 23% of all new rounds in Q1 were down rounds, the highest rate in 5+ years. A snapshot of the data is below. The full report is here: https://lnkd.in/guFqwptP Peter Walker and Nicole DeTommaso of Harlem Capital will run through the data live at 10am PT / 1pm ET today. Listen in—or watch the recording—here: https://lnkd.in/gwbkvwcm 

Join Carta’s Policy Team for our monthly roundup of the key policy updates impacting the innovation economy.

Join us tomorrow May 7th at 10am PT / 1pm ET as Peter Walker, Carta's Head of Insights, reviews the highlights from a down year in startup fundraising. RSVP Today! This is your chance to learn about current market valuations, fundraising velocity, and detailed dilution metrics for startups from seed-stage through Series F. If you can't join us on May 7, RSVP and we'll send you the recording.