The state of VC within software and AI startups – with Peter Walker

In this episode of the Pragmatic Engineer Podcast, Gergely Orosz interviews Peter Walker, Head of Insights at Carta, about the venture capital ecosystem and its impact on startups and software engineers. They discuss the decreasing number of startups receiving funding despite consistent VC investment, the impact of AI on team sizes and the rise of solo founders, and key metrics like ARR per FTE. Walker provides data-driven insights on hiring trends, valuation changes, bridge rounds, and the increasing time between funding rounds. They also explore the importance of equity, option pools, and advisory roles in startups, offering advice for engineers evaluating VC-funded companies and aiming to thrive in them. The conversation highlights the changing dynamics of VC, the growing emphasis on capital efficiency, and the increasing risk associated with early-stage startups.