The introduction of the SAFE in 2013 marked a sea change in funding to the earliest venture startups.
As of the end of last year, 86% of pre-priced capital flowed through the SAFE as opposed to the slightly more dusty convertible note.
But of course, you want more than a little history lesson. So please enjoy our recently published State of Pre-Seed covering everything we know about this embryonic startup stage.
The highlights:
Overall reduction of pre-seed activity: $716 million went to pre-seed startups in Q4, down from $965 million in Q3 and $1.2 billion in Q2. The distribution of deals also shifted towards smaller rounds.
Pre-seed funding is dispersed: While California captured 39% of pre-seed cash in 2024, New York and New Jersey took in 13% and 8%, respectively. Other states above 3% included Massachusetts, Washington, Texas, and Florida.
Steady valuation caps: Median valuation caps for post-money SAFEs have remained relatively stable, sitting at $10 million for rounds between $500,000 and $1 million.
Top metro areas: After the Bay Area and New York, the next largest hubs for pre-seed fundraising in 2024 were Los Angeles, Boston, and Austin.
The full report is worth your time, but if you'd rather watch smart commentators trade takes on the information instead, head over to replay our 2024 Venture Capital Review webinar.
Subscribe here if you're new to the Data Minute. Forwarding encouraged!
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.
