VC-backed founders: this is normal.
As we head towards the end of the year, I'm having a lot of conversations with founders about "when will VC pop back".
They want to know when fundraising will get easier, especially outside of AI companies. They want to peer into the future and find that magic date when all of this sluggishness will fade.
But it won't - because now is normal.
So far in 2024, US companies on Carta have collectively raised about $21 billion per quarter.
Last year it was $18B. In 2020 it was $22B.
In relation to 2021's $55 billion, sure things seem dire. But that comparison point is screwing with our collective mental models. If we just wave a wand and erase our most recent bubble behavior (6 wild quarters), the mood around venture would change.
Yes, we would expect to see some gradual growth over time (as the market expands both on and off Carta). And yes, the gap between the upper range and the median for these companies is as large as ever.
This feels hard because it is hard! And because the quality of the founders on either side of you has never been higher. It's like swimming in a pool of Olympic swimmers - even great founders can feel lesser than.
Optimistic about 2025, but we are in the new normal now and it's unlikely to shift dramatically. Time to build!
#startups #founders #venturecapital #fundraising
If you want to dive into more predictions about the state of startups in 2025, join our virtual event on Thursday at 10am PT: https://lnkd.in/gWcaCVVf
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