Should we keep using alphabet letters to describe venture rounds?
Look - the practice of using alphabet letters for venture stages means that within each letter, the variation in valuation and deal structure can be huge.
Replacing this system will definitely not be easy but it can already lead founders astray.
Take a look at the Series B data below (primary rounds only on Carta, all raised in 2023).
8% of Series B deals had pre-money vals between $10M-$25M, while 10% had valuations between $250M-$499M. That's a 10x chasm in the same letter!
So founders, don't get discouraged if your deal terms end up substantially different from published medians. The world is much messier than some of our neat lines suggest.
And definitely ignore any averages if you see them, those are far too sensitive to outliers to be of much use.
Of course, one of the biggest influences on valuation is company industry - drop a comment below with your specific sector if you'd like to see this distribution chart personalized to your needs.
Also open to ideas on reforming this alphabet system - surely we can all come up with something better!
#cartadata #valuations #startups #founders #SeriesA #SeriesB
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