This Is How AI Will Reshape Startups Forever | Henry Ward, Co-Founder of Carta

About this video

• Video Title: This Is How AI Will Reshape Startups Forever | Henry Ward, Co-Founder of Carta
• Channel: NEW ECONOMIES
• Speakers: Henry Ward, Ollie (interviewer)
• Duration: 47:52

Overview

This video features an interview with Henry Ward, co-founder of Carta, discussing how Artificial Intelligence is poised to transform the startup landscape. Ward shares insights from Carta's journey, including its origins, growth strategies, fundraising experiences, and the impact of technological shifts like AI on business operations and the venture capital ecosystem. He also touches upon his philosophy as a founder and CEO, the challenges of scaling a company, and his vision for Carta's future.

Key takeaways

• AI's Transformative Potential: AI is rapidly changing industries, including startups, and necessitates a focus on speed of learning and adaptation rather than adhering to established best practices.
• Carta's Evolution: Carta began by solving the cap table management problem by shifting the source of truth from paper to data, and is now leveraging AI to potentially re-invert this by processing historical documents.
• Startup Growth Strategies: Successful startups often employ unique "hacks" for initial growth, but founders should aim to identify long-term strategies that will remain effective.
• The Startup Customer Challenge: While startups are often seen as ideal early customers, building a large business solely by serving them is exceptionally difficult due to their inherent instability and limited resources.
• Innovation vs. Execution: Carta is characterized as an "innovation startup" that must continuously develop new products to survive and grow, unlike "execution startups" that focus on perfecting a single product or service.
• Venture Capital Landscape: The VC market is bifurcating, with mega-funds growing larger and many emerging managers operating in niches, while mid-sized funds struggle. AI is currently attracting significant investment, leading to a potential "bubble" that, while inflating valuations, is a rational response to uncertainty.
• The Importance of Secondaries: Secondary markets and tender offers are crucial for providing employees with liquidity, though balancing founder and investor incentives can be challenging.
• Founder Lessons: Building a company is inherently difficult, and experienced founders learn to embrace challenges. The true test of an investor's character often comes during company exits.
• Carta's Future: Carta aims to expand its platform beyond venture capital into private equity and private credit, leveraging its established playbook globally and continuing to innovate with AI.