Happy Friday. In today's show, we dive into Carta’s new report on pre-seed funding in 2024, Twitter/X is forced to reveal their investors. For more: How To Raise Millions For Your Startup in 60 Days | Youtube
EOD Show 019 - Detailed Podcast Show Notes
Host: Matt Parker
Episode Overview
In this episode, Matt Parker dives into the latest trends in pre-seed funding, reveals the surprising list of Twitter X acquisition backers, and discusses recent economic data affecting the startup ecosystem.
Key Topics
1. The State of Pre-Seed Funding in 2024 (Carta)
SAFEs dominate early-stage funding:
90% of rounds under $1 million use SAFEs
Preferred for rounds under $3 million
SAFE characteristics:
85% are post-money SAFEs
57% have only a valuation cap
35% have both a valuation cap and a discount
7% offer only a discount
Valuation trends:
Median valuation cap for $1 million raise: $10 million post-money
$500K raises see valuation caps around $7-8 million
Changes in check sizes:
Small checks under $25K are becoming scarcer
Larger checks taking a bigger slice of investments
Discount rates:
A median discount of 20% when present
Convertible notes:
Interest rates increased to 7.8% in Q2 2024 (up from 6.8% in Q2 2023)
2. Twitter X Acquisition Backers Revealed
High-profile investors include:
Andreessen Horowitz
Sequoia Capital
Fidelity
Larry Ellison
Prince Alwaleed Bin Talal of Saudi Arabia
Binance (cryptocurrency exchange)
Sean "Diddy" Combs
Matt's insights:
Demonstrates the complex web of relationships in major tech deals
Importance of building a diverse investor list for fundraising
3. Economic News and Job Market Shifts
Labor Department revision:
818,000 fewer jobs were added in the year ending March than previously reported
Suggests cooling the job market
Impact on startup ecosystem:
Challenging job market for tech workers
Shift from abundant opportunities to more network-based hiring
Insider connections are becoming more crucial for job seekers
4. Startup Funding Highlight: Lettuce
San Francisco-based automated tax and accounting system
Raised $15 million in Series A funding from Zeev Ventures
Targets businesses of one, helping with tax and accounting automation
Indicates continued investor interest in fintech and automation startups
Call to Action
Check out Matt's new fundraising course on Maven
Free webinar every Thursday related to fundraising strategies
Subscribe to the End of Day Show on YouTube and podcast platforms
Follow For Insights media platform for more startup and tech news
Closing Thoughts
Matt emphasizes the changing landscape of startup funding and job markets, encouraging founders to stay informed and adapt their strategies accordingly.
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Stay curious,
Matt Parker
The End of Day Show is hosted by Matt Parker and airs four times a week on YouTube and Substack.
SAFEs Dominate Pre-Seed, Twitter X's Secret Investors, and Job Market Shifts