Hello!
I'm Hamza, the newest member of the Carta Insights team. I'm covering the newsletter while Peter is on vacation.
Following up on our Q1 State of Private Markets report, let's look at the latest data on health-related startups, which include healthtech, biotech, pharma, and medical device companies.
Over the past two years, founders in healthcare have been selling less of their companies to investors in primary rounds. At the priced seed, Series A, and Series B stages, dilution for health startups has noticeably decreased. Dilution for SaaS startups during the same time period has stayed flat or even increased slightly.
During Q1 2024 in particular, there was a marked decline in median primary round dilution for health startups. In priced seed rounds, median dilution for health companies dipped down to just 14.2%, compared to 20% for SaaS.
Dilution was historically higher for companies in health than SaaS, but the industries appear to be converging. More founder-friendly terms for health startups may be a result of greater, enduring VC interest in the industry since COVID. Healthcare has also held up better than other industries since the VC downturn, allowing founders to reach higher valuations with smaller round sizes than in the past.
It remains to be seen whether this change will last, but we'll continue to monitor it here at Carta.
Recent Episodes of The Data Minute Podcast
In Case You Missed It: Last Week's Podcast Episode
Subscribe here if you're new to the Data Minute. Forwarding encouraged!
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.
