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Fund Formation
A comprehensive guide for emerging VCs didn't exist, so we built one.
Starting a VC firm is a complex process. Leverage our resources as you build your first fund.
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VC 101
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Getting started
Author:
Rita Astoor
Date:
October 2023
featured article
How to start a venture capital firm
Venture capital is an investment strategy in which general partners collect outside capital and use it to invest in emerging companies, often in the startup tech industry.
Investors
August 2022
Venture capital fund structures
Thinking of starting your own venture capital fund? Learn the legal vocabulary of VC fund structure, including LPs, GPs, LPAs, and LLCs.
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Investors
June 2023
Fund administration
Fund administration is a third-party service that handles venture fund accounting, LP reporting, asset valuation, capital calls, and capital distributions.
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Investors
September 2023
Investment thesis
An investment thesis clarifies how you’ll make money for your fund’s LPs. Learn how to write a great thesis so you can develop a winning fund strategy.
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The Venture Playbook: Starting a fund
Learn the ins and outs of venture — from launching your firm to supporting your portfolio companies.
Download
VC 101 video course
VIDEO COURSE
Venture Capital 101
Learn the fundamentals of starting a venture capital fund.
VIDEO COURSE
VC regulations
Get familiar with the regulatory landscape by knowing its areas of focus, registration requirements, and exemptions.
VIDEO COURSE
Limited partnerships & management companies
Understand the limited partnership agreement (LPA) and the big role management companies play in VC.
VIDEO COURSE
Venture Capital 101
Learn the fundamentals of starting a venture capital fund.
VC regulations
Get familiar with the regulatory landscape by knowing its areas of focus, registration requirements, and exemptions.
Limited partnerships & management companies
Understand the limited partnership agreement (LPA) and the big role management companies play in VC.
Popular tools
LP pitch deck template
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IRR calculator
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VC regulatory playbook
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Investor update template
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Portfolio management
How to write an investment memo
What is a tear sheet?
How to write an investment thesis
What is a fund closing?
The venture capital regulatory playbook
Discover your end-to-end resource for understanding the basics in venture capital regulation.
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Fund structures
Venture capital fund structures overview
Limited partner (LP)
General partner (GP)
Limited partnership agreement (LPA)
Fund management
Author:
The Carta Team
Date:
June 2023
featured article
Fund administration
Fund administration is a third-party service that handles venture fund accounting, LP reporting, asset valuation, capital calls, and capital distributions.
Investors
April 2024
Carried interest
Carried interest is how venture capital firms compensate and incentivize their general partners. In this article, we'll explain how carry works in private equity.
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Investors
February 2024
Capital calls
When venture capitalists are ready to invest in a private company, they usually have to make a capital call first. Learn more about capital calls in private equity.
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Investors
August 2020
ASC 820
ASC 820 is an accounting standard that requires investments to be reported at fair value. Learn more about how to stay compliant with ASC 820 valuations.
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Learn more
Fund performance
How VCs measure fund performance
Sharing your track record as an emerging VC
Internal Rate of Return: How to calculate IRR
Regulations
Author:
Holli Heiles Pandol
Date:
December 2022
featured article
Venture capital regulations
The SEC regulates most aspects of venture capital funds and fund managers. Learn more about private fund regulation requirements to remain compliant.
Investors
October 2023
AML & KYC
Know your customer (KYC) checks help companies and financial institutions comply with anti-money laundering (AML) regulations. Learn the differences.
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Equity Education
July 2023
Accredited investors
Learn what an accredited investor is, requirements and qualifications, why the requirement exists, and how the accredited investor rules may change.
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Investors
August 2022
Regulation D
Regulation D outlines some of the rules private funds and companies can follow to raise money by selling securities without having to register.
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Learn more
Taxes
Author:
Jeffrey Johnson, CPA
Date:
September 2022
featured article
Venture capital tax treatment
Learn about venture capital tax treatment—and what LPs expect from your fund during tax season.
Carta
February 2023
Schedule K-1 tax form
In this article, we cover important due dates, filing information, and what to include in a Schedule K-1 form, a key tax document for LLCs.
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Educational Essentials
August 2023
Qualified small business stock (QSBS)
Understand the qualified small business requirements and how to take advantage of QSBS tax treatment for eligible stock options.
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Investors
April 2024
Carried interest
Carried interest is how venture capital firms compensate and incentivize their general partners. In this article, we'll explain how carry works in private equity.
View
Latest articles
Featured
August 2024
State of Private Markets: Q2 2024
In Q2 2024, the venture ecosystem showed modest signs of improvement.
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Featured
July 2024
State of startup compensation, H1 2024
Carta data shows that companies have become leaner and salary benchmarks have remained flat across much of the ecosystem.
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Data & Research
July 2024
Examining the geographic divide of VC activity in 4 key industries
The West is the dominant U.S. region for overall venture fundraising. But in key sectors like fintech and health, other regions aren’t far behind.
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Data & Research
July 2024
Amid a battle for deals, VCs are hunting for early-stage value
With competition fierce among VCs for premium startup deals, some are turning their attention to earlier stages, causing knock-on effects for the rest of the venture ecosystem.
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Data & Research
July 2024
Seed valuations climbed to near-record heights in Q2
After holding steady in 2023, the median seed valuation has now jumped in two straight quarters, a sign that VCs are feeling optimistic about early-stage startups.
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Data & Research
July 2024
Startup shutdowns continued to accelerate in Q1
The number of startup shutdowns on Carta hit a new high in Q1, with 254 company closures—a 58% increase compared to last year.
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Liquidity
July 2024
Secondary markets
Understand the function of the private secondary market and how companies can benefit from secondary liquidity and secondary market transactions.
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Data & Research
July 2024
How a decline in dilution is reshaping the fundraising landscape
Over the past five years, dilution levels have declined at every stage of startup life. This can have compounding effects for the makeup of company cap tables.
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Featured
July 2024
First Cut—State of Private Markets: Q2 2024
Initial data from Q2 2024 shows modest increases in median valuation and round size across much of the U.S. venture ecosystem.
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