How to split equity between startup founders? with Peter Walker of Carta

60% startups dont split equity 50-50

The conversation with Peter Walker covers various topics related to startups, including structuring compensation packages, equity distribution among early hires, co-founder splits, raising capital, startup failure rates, and alternative financing options. Peter shares insights based on data from Carta, providing valuable information for founders and investors. 

The conversation highlights the challenges and opportunities in the startup ecosystem, particularly in the context of the changing landscape in 2023. Overall, the discussion provides valuable insights into the world of startups and venture capital. In this conversation, Peter Walker discusses various aspects of venture capital and startup funding. He provides insights into different funding rounds, including pre-seed, seed, and series A. 

He also highlights the changing valuations in the venture capital landscape. Peter shares his thoughts on concerns about investment in SaaS startups and the differences between B2B and B2C SaaS companies. He discusses the trends he is excited about in 2024, including the shift towards capital-efficient startups and the growth of hard sciences. Peter emphasizes the importance of data storytelling and shares his perspective on the future of AI. He also discusses red flags to watch out for in cap tables.

Chapters

00:00 Introduction
00:38 Understanding Peter Walker's Background
02:21 The Best and Worst Parts of Peter's Job
03:44 Structuring Compensation Packages in 2023
07:11 Equity Distribution Among First Five Hires
10:45 Factors Influencing Co-Founder Split and CEO Background
15:09 The Impact of 2023 on Startups
19:11 Raising Capital as a Success Metric
21:34 Startup Failure Rates and Reasons for Closure
25:24 Exploring Alternative Financing Options
29:18 Evaluating Startups and Factors Influencing Valuation
34:13 The Use of SAFEs in Fundraising
36:25 Raising Multiple SAFEs and Conversion
39:46 Comparison of Valuations in Pre-Seed, Seed, and Series A Rounds
41:28 Pre-Seed and Angel Rounds
42:28 Seed Rounds
43:26 Series A
44:46 Later Stage Rounds
45:29 Investor Concerns about SaaS Startups
46:43 B2B vs B2C SaaS Companies
48:44 Future of Crypto, Web3, and AI
50:43 Trends in 2024
56:19 Importance of Data Storytelling
58:55 Cap Table Red Flags

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