Exercise flow improvements

Optionholders at private companies will now see an improved exercising experience where they can clearly see fair market value (FMV), exercise spread, and option income. 


Who this affects:

  • Optionholders exercising option grants from private companies


What's new: 

  • Current fair market value (FMV) - Optionholders can see the current fair market value the issuing company has on file, which determines the tax implications of their exercise.

  • Exercise spread on option grant - Optionholders can see the per-grant spread when selecting a grant to exercise. This shows the difference between exercise price and fair market value.

  • Overall gain/loss - When selecting the quantity of shares to exercise, optionholders can see the overall gain/loss for their exercise. This is useful for understanding tax implications of an exercise.
  • Tax implications - Optionholders will be able to see tax implications more clearly. If the exercise is taxable and the issuing company has provided tax rates for the jurisdiction of the holder, the holder will see a table of the relevant taxes for their exercise. 





Information Clarity in the Equity Awards Ledger

What’s coming: The "Quantity" column shown in the "Options" tab of the Equity awards ledger will be re-labeled to "Original quantity" to more accurately reflect the information in this column.

We're highlighting this small change because it comes in anticipation of some improvements to Carta's transactional workflows that will reinforce the dynamic nature of option grants and their quantities.

Who this affects: All companies

What’s better: Information clarity

Timing: Live for all customers December 7th

Exercisability settings for non-US companies

Non-US, private companies in supported regions now have the ability to enable exercising workflows for their optionholders. Optionholders can access wire payment instructions within Carta after exercise approval to send funds directly to the company.


Who this affects:

  • 🇰🇾   private Cayman Island companies
  • 🇨🇦   private Canadian companies
  • 🌐   + more locations in the future! 

What's new: 

  • Supported non-US, private companies can enable offline wire exercising, allowing their optionholders to initiate and track an exercise request within the Carta platform. 
  • Company admins can manage payment instructions that are provided to optionholders after an exercise is approved. 
  • Company admins can toggle exercisability on and off, as well as select which grant types are exercisable.

Action required: 

  • Company admins must visit the Transaction Settings page to enable exercising
  • Companies must have a valid fair market value (FMV)

Resources: 



Using Custom Spreadsheets When Adding New Stakeholders in Bulk

What’s coming: Admins can now upload new stakeholder information using data stored in custom spreadsheets/reports 

Who this affects: All companies 

What’s better:

For companies that use HR Providers to store their stakeholder/employee information, their company admins can now upload new hire information into Carta in bulk using the HR Provider's report (xls, or xlsx) with minimal modifications.

This workflow is an enhancement to the existing Bulk Add Stakeholders flow, with a new step for users to map the columns in the report to Carta data fields.


Timing: Live for all customers Oct 20.

Changes to Watermark Styling

We've listened to your feedback on watermark styling obstructing the readability of the documents and we've made a few changes to address those concerns. We'll continue to iterate on our watermarking capabilities and tools in the coming months and we are starting with the following changes.

Here's a sample document with the old watermark styling


Here's the same sample document with the new watermark styling


Specifically, we've made the following changes with this iteration:

  • Reduced opacity of the watermark text
  • Updated alignment between the rows
  • Fewer repetition

Who these changes affect?
All Carta users who choose to apply watermark on their documents. These changes will be rolling out to all users today.

Exercise Simulator on Mobile!

In an aim to make exercising simple and easy to understand, we are excited to support simulation tools on iOS and Android apps.

This release will allow any option holder on iOS or Android app to view the estimated cost and taxes by simulating an exercise before performing it. 

There are three different scenarios available through the simulator depending on the type of the grant(s).

  • All Vested Options
  • Early Exercise all Options
  • Customize your exercise

While All Vested Options and Early Exercise All Options allow users to simulate a fixed number of options based on the selected date, Customize your Exercise allows users to manually enter the number of options they plan on exercising.

Once the preferred scenario is selected and additional tax information has been provided, the cost and taxes for that exercise are calculated.

Portfolio Merging

Goal: Allow users to merge their portfolios and view holdings in one view.

Audience: 

  • Users: Equity holder, Employees, Investors (Corporations), Investors (Fund Admin), LP
  • Companies on Launch, Starter, and Growth 
  • Platforms: Web, iOS and Android

What’s New: Users will now be able to merge multiple portfolios into a single one using the self-serve portfolio merge tool.

  • Organization: Organize and view different company holdings in a single portfolios 
  • Customization: Customize portfolio views by selecting which portfolios to merge

Timing: Rolled out on 09.24.2020

Resources: https://support.carta.com/s/article/merging-portfolios

Improvements to the exercise approval screen

What's coming: 

Make more informed decisions when reviewing and approving option exercise requests with key information at your fingertips

Who this affects:

Users with the "Option exercise approver" role in companies issuing stock options with online exercising enabled

What's better: 

  • The ability to approve or reject exercise requests
  • Information about the option grant and stakeholder is readily available
  • Clearer presentation of information

New exercise approval screen:

Previous exercise approval screen:

Timing: 

  • Rolling out to 10% of customers on September 28, 2020
  • Release percentage will slowly increase to 100%

83(b) elections for Profits Interest Units

What’s coming:

A simple way to manage 83(b) elections for Profits Interest Units

Who this affects:

  • LLCs
  • US-based equity holders who are issued Profits Interest Units

What’s new: 

  • 83(b) file management
    Equity holders and admins now have a dedicated place for 83(b) elections for Profits Interest Units. On the PIU modal, users will see an 83(b) elections tab where they can access the generated 83(b) election form and upload a signed copy for their issuing company and personal records.
  • 83(b) template for PIUs
    Carta generates a PDF template based on the information in the platform.
  • 83(b) reminders
    Timeliness is important for 83(b) elections. Equity holders will see various reminders in-app and by email highlighting 83(b) eligibility.

  • Filtering on 83(b) filing status
    For company administrators, it is easy to filter PIUs based on the 83(b) filing status.



Safe & Convertible Note Calculator

What’s coming: 

  • This scenario modeling tool helps founders predict the future impact of Safe and Note ownership when converted at a future priced round. 

Who this affects: 

  • Users: Equity administrators, Law firm partners
  • Packages: All packages (Launch, Starter, Growth, Scale, and IPO-Ready will receive this calculator)

What’s new: 

  • View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations.
  • Model multiple Notes or Safes and a priced round to account for all anticipated fundraising activity between now and the completion of a future priced round.
  • Assess the potential impact of different types of convertibles, including pre-money Safes vs. post-money Safes.

Timing: In September, all companies received access to this calculator.


Calculation Definitions For Reference:

Option Pool Increase
(Target Available Pool % *  Post-Money Fully Diluted Shares) - Available Options

Post-Money Valuation
Preferred Price Per Share * Post-Money Fully Diluted Shares

Preferred Price Per Share
Pre-Money Valuation / (Current Fully Diluted Shares + Option Pool Increase+ Converted Shares)

New Fully Diluted Shares
Current Fully Diluted Shares + New Money Preferred Shares + Option Pool Increase + Converted Shares

Conversion Price Per Share (Convertible Notes and Pre-Money Safe)
Lower of:

  • (1 - Conversion Discount) * Preferred Price Per Share
  • Valuation Cap / (Outstanding Shares + Outstanding Options +Available Options + Option Pool Increase)

 Conversion Price Per Share (Post-Money Safe)
Lower of:

  • (1 - Conversion Discount) * Preferred Price Per Share
  • Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Converted Shares)

Safe/Notes Ownership:

  • Convertible Note Converted Shares / New Fully Diluted Shares
  • Safe Converted Shares / New Fully Diluted Shares 

Safe/Note holders post-priced round

Converted Shares / New Fully Diluted Shares

New investors post-priced round

New Money Preferred Shares / New Fully Diluted Shares

Your post-priced round ownership

Founder Shares / New Fully Diluted Shares

Dilution of Founder Shares

(% change in Founder Ownership / Current Fully Diluted Shares) * 100

Value of your shares post-priced round

Founder Shares * Preferred Price Per Share

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