The key insight this week
There was some hope that 2023 would bring brighter news to early-stage startups. Unfortunately, at least in terms of fundraising, it's been more of the gloomy same.
Back in the sun of March 2022, pre-seed companies on Carta raised nearly $650 million from 3,748 individual notes/SAFEs. Angel investing was all the rage, companies were raking in capital, and times were good.
Fast forward to last month - companies in the same pre-seed stage raised under $100 million. The exact figure of $94.6 million will likely rise as we get some tardy data on the books, but it is a far cry from 2022.
What does this mean for pre-seed founders? It's likely time to adjust expectations. Even the earliest angels are expecting companies to do more with less — be it proving out product-market fit, hiring an initial team, or gaining traction in general.
On the plus side, companies at this earliest stage are free of the burden of growing into inflated valuations. On the other hand, they will need to be more creative because capital is restricted across the ecosystem.
So you're raising your first priced round…
Fundraising is still happening! And Carta is making it much, much easier. We now create automated pro forma deals directly from the app for any founder (even those on our free Launch product).
You'll want to read the full details below, but in a nutshell we take all the difficult math from the convertible notes and SAFEs from your earliest investors and output a beautiful pro forma that shows exactly what your fundraise will mean for all cap table participants.
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Peter Walker
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.
