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Equity

Charting the future of the early-stage venture market with Carta’s CEO

Equity

TechCrunch

Entrepreneurship, Business News, News, Business, Technology

4.2372 Ratings

🗓️ 8 June 2023

⏱️ 31 minutes

🧾️ Download transcript

Summary

This week, we had Carta CEO Henry Ward on to chat through the early-stage market with us.  Alex had a grip of data and a sheaf of questions, so here's what we got into: The current state of the early-stage venture capital market: From Ward's perspective, the early-stage market is in better shape than many folks think. It's the later-stages of venture capital that are the most moribund. We also riffed on the quality of startups that are raising today, and how much pain is coming for young tech companies that can't quite attract more capital. Carta's new Seed and Series A product: Carta is offering a mostly-automated method of closing early-stage rounds; we wanted to better understand the economics of the effort, and what the unicorn hopes to achieve from the work. We closed with a look ahead, and a series of fun closing questions with Ward. That's just the high-level summary. We also discussed entrepreneurship more broadly, the importance of LLCs, and even how to construct a podcast interview. Don't forget: our listener survey is back! Take a moment to let us know what you want more of, what you want less of, and how we can make this the kind of podcast you want to come back to every week. Chat soon! For episode transcripts and more, head to Equity’s Simplecast website. Equity drops at 7 a.m. PT every Monday, Wednesday and Friday, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together and more! Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:18.0

Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and the nuance behind the headlines. My name is Alex Wilhelm and this is our Wednesday show where we niche down to a single topic and go deep.

0:23.7

Today we are talking to Henry Ward, the CEO and co-founder of Carter.

0:27.8

On the show today, the state of the early stage markets, why Carter wants to make fundraising

0:31.9

cheaper, and then a look ahead to the rest of the year from a startup and venture perspective.

0:35.8

Now if you don't know what is Carter well Carter is a startup and unicorn that helps other startups and venture capitalists, manage cap tables, execute

0:43.9

409A evaluations, and allows employees to keep track of their vesting schedules and

0:47.8

purchase their options. I know that because I've actually used it as a startup

0:51.0

employee and the company has also built Carter X which facilitates

0:54.0

secondary transactions for private startup shares and the company was last

0:57.4

valued at a post money evaluation of around 7.4 billion after raising

1:01.1

five hundred million dollars back in mid-2001.

1:04.0

Henry, welcome to the show.

1:05.5

Hey Alex, great to be here.

1:07.0

Thanks so much for having me.

1:08.0

Yeah, and you win the Did My Homework For Me Award

1:12.0

because I was talking to your team about what I wanted to talk about on the show and I'm like look we're going to riff on the early stage and you guys

1:17.4

sent over an actual deck of data and that is a first I think in the history of equity in terms of helping me do my job.

1:23.8

So from a really high level starting up in the stratosphere, what is your take on the current health of the earliest age

1:30.2

venture capital market as it exists today.

1:32.6

Yeah, it's a lot healthier than I think people think.

1:35.5

It doesn't feel healthy, you know, because if you compare it to 21 and kind of the

1:40.8

frenzy of that period, you know, we were averaging something around 800

...

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