Our fresh State of Pre-Seed report, covering data through Q1 2026, just dropped, and it paints a complete picture of what the early-stage fundraising environment is like.
Founders and investors agree that SAFEs are the standard instrument for early-stage rounds. 77% of all early-stage deals were raised on SAFEs, and only 15% on priced equity.
Breaking out the data by deal size gets more interesting. Even for rounds in the $3M-$4M range, the majority involve SAFEs, not priced equity. Priced rounds have been pushed further up the ladder as the industry has become more comfortable using unpriced instruments for larger investments.
SAFEs are a great tool in the early stages of a business when there is so much uncertainty and a formal valuation would not be based on much information. They're optimized for speed and cost-efficiency. At a certain point, however, it becomes important to go through the process of raising a priced round for transparency, good governance, and even optics.
Check out the full report here, which dives deeper into valuation caps, deal terms, and specific industries:
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Cheers,
Hamza Shad
Carta Insights
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.
