In this episode, Nolan and Kelli chat all things “startups data from Carta” with Peter Walker, Head of Insights at Carta.
They discuss Carta’s comprehensive report on startup compensation trends in H2 of 2023 influencing the flow of “dry powder” and the alarming increase in startup shutdowns. Peter proves VC’s will have less leeway in 2024 to throw good money after bad forecasting an even tougher year ahead.
The team also discuss honesty in HR around equity structures, including liquidation preferences, and Peter offers advice for job candidates on evaluating startup offers with an investor's mindset.
HR Heretics is a podcast from Turpentine.
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SPONSOR:
This episode is brought to you by AttioAttio is the next generation of CRM. It’s powerful, flexible and easily configures to the unique way your startup runs, whatever your go-to-market motion. The next era deserves a better CRM. Join OpenAI, Replicate, ElevenLabs and more at https://bit.ly/AttioHRHeretics
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LINKS:
Peter writes “The Data Minute”, a weekly newsletter highlighting data from over 43,000 private companies that use Carta’s platform to manage their cap table: https://carta.com/subscribe/data-newsletter-sign-up/
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KEEP UP WITH PETER, NOLAN, + KELLI ON LINKEDIN
Peter: https://www.linkedin.com/in/peterjameswalker/
Nolan: https://www.linkedin.com/in/nolan-church/
Kelli: https://www.linkedin.com/in/kellidragovich/
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TIMESTAMPS:
(00:00) Intro: Peter Walker and Startup Compensation Trends
(00:39) VC in 2023: Dry Powder and Capital Deployment
(03:02) 2023's Investment Distribution: Early vs. Late Stage
(07:43) Startup Shutdowns and Future Predictions
(11.13) Sponsor: Attio CRM
(12:09) The M&A Market: Challenges and Realities for Startups
(15:05) The Impact of the Economic Shift on Startup Hiring and Industry Trends
(21:59) Job Offers in Today's Market
(22.30) Valuations and Equity in Job Negotiations
(24:07) Key Questions Candidates Should Ask About Equity
(25:34) Understanding Equity and Liquidation Preferences
(27:59) Transparency in Startup Equity
(30:17) Educational Resources and Support for Job Candidates
(34:22) Options vs. RSUs in Late-Stage Companies
(37:35) Startup Compensation
(41:21) The Equity Dilemma: Exercising Options and Market Realities
(42:32) Post Termination Exercise Window
(43:49) Wrap
