Startup down rounds hit 5-year high

The most interesting insight from Carta's Q1 fundraising report: 23% of all new rounds in Q1 were down rounds, the highest rate in more than five years.

Q1: 1,064 total rounds and $16.3B in cash raised.

By round...

• Seed deal count fell to 414, down 33% from Q4 2023, the lowest quarterly deal count since at least the start of 2019.

• Series A deal count dropped to 313, a 36% decline, the lowest quarterly deal count since at least the start of 2019.

• Series B deals in Q1 declined by a more modest 11% compared to the prior quarter.

• Series C deal count increased by 14%, marking the busiest quarter for that stage since Q2 2023.

• Series D deals were minimal, with just 39 rounds in Q1. The median valuation at Series D fell by 52%.

• Series E+ valuations increased by 37% quarter-over-quarter.

Other notable insights...

• Employees exercised about one-third of their vested, in-the-money stock options in Q1, ending a nine-quarter decline in the exercise rate.

• For early-stage investors, Q1 was the slowest quarter in years.