Raising a round for your startup is exciting. But without adequate information, it can also be a little nerve-wracking. As a founder, you might be asking yourself whether you should take the best offer on the table—or whether it might be better to hold out, hone your pitch, improve your metrics and then try for more.
For founders, the temptation is usually to take what you can get and use it to build momentum. But that’s only because the early-stage fundraising market has historically lacked transparency: It’s hard to know what similar early-stage companies have recently obtained, and the information disparity advantages experienced investors over first-time founders.
But if you’re raising a SAFE on Carta, that information asymmetry is a thing of the past. Carta’s product team is building tools to help founders across all stages navigate changing market dynamics in venture financing—including tools that help founders understand their fundraise in relation to those of peer companies.
Our newest tool is SAFE Insights: Founders trying to strategize the terms of their next round now have access to benchmark data for companies in the same industry, stage, and location.
How it works
Just input the terms of your round into Carta’s SAFE Insights tool to see how your fundraise compares to benchmarks for:
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Valuation caps
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Term distributions
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Discount rates
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Number of investors
Getting ready to raise a SAFE? Start by understanding benchmarks for comparable companies on Carta. Carta customers can navigate to the SAFE Financings page under the Fundraising tab, and click on “Go to SAFE insights calculator.”
Not yet a Carta customer? Reach out to a member of our team to learn more about Carta’s fundraising suite.
DISCLOSURE: This communication is on behalf of eShares, Inc., d/b/a 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. ©2023 eShares, Inc., d/b/a Carta, Inc. ("Carta"). All rights reserved. Reproduction prohibited.
