The story in startups is that all the excitement has moved to Seed and Series A. Is it true?
...Yep.
The chart below looks at the total capital invested into startups on Carta in a given quarter by stage. In the first quarter of 2021, only 4% of invested capital went to seed-stage startups.
This past quarter, 14% went to seed!
Series A has seen a similar percentage jump (from 17% to 29% over the same timeframe).
On the flip side, Series D was plodding along at 13% or so of capital for many quarters - until these past two, where it fell to under 5%. Series E and beyond experienced a similar shrink.
Key takeaways:
1. VC investment as a whole is down significantly from peak levels in 2021. Every stage, in absolute dollar terms, is smaller than previously.
2. This decline is hitting late-stage much harder than early-stage.
3. Some VCs who were growth or late-focused have turned their eyes to Series A and earlier.
Of course if everyone is focused on the early-stages, venture dollars will continue to be reduced on an absolute basis. There just aren't enough companies (and rounds aren't big enough) to take all the dry powder billions in those nascent company growth periods.
Here's to the return of the late-stage later this year (fingers crossed)!
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DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
