49: Peter Walker - Startup funding in 2024, the year of layoffs or recovery?

Why downrounds might not be as bad as it sounds and that taking VC money doesn't mean you have to do that forever.

Feb 04, 2024

Summary

Peter Walker, Head of Insights at Carta discusses with me various aspects of startup funding and investment and whether 2024 is another year of lay offs or recovery.

We explore the value of small angel investments, the obscurity of startup funding letters, the selectivity of startup advisors, and the potential of angel investments as marketing assets.
We also touch on the excitement for the future of startups, the impact of accelerators and venture studios, the importance of distribution and growth, and whether a downround really is such a bad thing.

Takeaways

There is a growing trend of companies exploring non-VC growth paths and aiming to achieve venture-scale outcomes without raising additional funding.
The use of startup funding letters, such as Series A and Series B, can obscure the wide variation in funding amounts and create unnecessary pressure for founders.
Angel investments can serve as marketing assets for startups, as investors with a strong brand can enhance a company's image.
The current generation of startups is building on a higher foundation of knowledge and asking different questions compared to previous years.

Chapters

05:30 Are the layoffs over in 2024?

13:35 The Shift Towards Non-VC Growth Paths

25:24 The Impact of Liquidation Preferences and Equity Education

43:52 The Value of Small Angel Investments

44:50 The Obscurity of Startup Funding Letters

46:14 Angel Investments as Marketing Assets

48:02 Excitement for the Future of Startups, Accelerators and Venture Studios