The top 6 findings for founders from our new State of Pre-Seed report.
1. SAFEs now make up the majority of rounds of under $3 million. 90% of rounds under $1 million are happening through SAFEs (vs priced equity).
2. 85% of SAFEs are post-money.
3. SAFE terms by share: 57% valuation cap only, 35% val cap + discount, 7% discount only, almost none uncapped & no discount.
4. Median valuation cap for a $1 million raise remains $10M (post-money). Val caps for a $500K raise float around $7-8M.
5. Small checks (under $25K) were a little harder to find in the most recent quarter, with the larger checks taking more share of total investment.
6. When present, the median discount is 20% (whether or not a valuation cap is also in the terms).
7. Bonus: average interest rates on convertible notes ticked up to 7.8% in Q2 vs 6.8% in Q2 2023.
Just skimmed the surface of our pre-seed report—be sure to dive into the full thing!
Read State of Pre-Seed Q2 2024
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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.
