New "Firm Management" page

What’s new?
Today, we are rolling out a new homepage for Carta Fund Admin GPs. The new Firm Management page is the first step in a series of new features we’ll be implementing to simplify the GP experience on the platform.

How it works
Instead of landing on the Firm Overview page when logging in, GPs will now see the new Firm Management page. From this page GPs can easily:
  • See an overview of all their entities’ high-level metrics 
  • Search & navigate to any of their entities
  • Access fund detail pages like Fund Performance, Partners, and Investments
  • Filter and sort their entities
Who does this impact?
The new homepage will be available to all Carta Fund Admin GPs. This has no impact on the LP experience, LP Portal-only experience, or free-firm experience. 

What’s next?
Over the next few weeks, the team will be working on adding more functionality and features to the page. Stay tuned for more details

Returning LP Experience in Closings

What's New

We simplified the experience for returning LPs filling out subscription documents in Carta’s Closings Tool. With most of their information pre-filled, LPs can fill any remaining info & sign subscription documents with just a few clicks. 

How it Works

When returning LPs are prompted to fill out subscription documents, we will pre-fill their documents if they’re investing with the same entity or individual they’ve previously filled out subscription documents for. This is especially useful for LPs that have investments on Carta both as an individual and through multiple entities like trusts or LLCs.

This is a big win for fund managers that are launching multiple funds or SPVs with the same LP base that are looking for a streamlined experience for their LPs. 

Who this affects

This is now available to any LPs using Carta's Closings Tool. The Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents. 

409A valuation data shared with Investors

What's new?

Portfolio companies can now share financial and cap table information with their Investors when their 409A valuation is complete. If you've been shared this data, you can view and download it directly from your Carta account.

How does it work?

When your portfolio company accepts their Carta 409A valuation, we ask them if they want to share some of the data used in the valuation with their Investors to help their investors stay up to date on the company's financial situation and to help streamline some of the jobs needed to be done on the Investors side, such as the ASC 820 valuation. 

The portfolio company will select which Investors to share the data with: 

If you were one of those Investors that was shared the 409A data, you will then receive an email notifying you of the new document that has been shared and will be able to see it in your Documents tab under that portfolio company in Carta!

What information will be shared?

Historical financials

Information about the company's last twelve month revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) as well as the previous twelve months revenue and EBITDA. Since the 409A valuation is a valuation of the company at a point in time, the data used is as of a specific date. For example, Meetly conducted their 409A valuation as of 03/01/2019 (this is their valuation date). For the historical financials, the company provided the last twelve months (03/01/2018-2/28/2019) and the previous last twelve months (03/01/2017-02/28/2018).

Summary financial forecast

In addition to their historical financials, the company will also share the projected next twelve month's revenue and EBITDA. Using the same example above, this would mean Meetly has shared 03/01/2019-02/29/2020 financial projections for revenue and EBITDA.

Cash and Debt

The company will also share the cash and debt balances as of their valuation date. In the example above, this would mean Meetly has shared their cash and debt balances as of 03/01/2019.

Summary level ownership information

Some cap table information will also be made available, which includes access to share class level information but will not contain any information about share holders. Here's what you'll see as an investor: 

Industry sector

Information about what industry the company operates in will also be shared. This is the industry information that was used to conduct the 409A valuation and may represent the current industry the company operates in. At Carta, we have preset industry lists that are used the 409A valuation. Should "N/A" appear next to industry sector for your shared data, it means the 409A valuation used a custom industry set and this information will not be made available.

 Time to exit

This represents the number of years until the company expects to have an exit event. 409A valuations are capped at 5 years for the time to exit so keep this in mind when reviewing this estimated exit term.

What information will NOT be shared with me?

This document will not contain any information about the concluded FMV, latest preferred price, any rights & preferences the preferred share holders have, strike prices or purchase prices, and any information about a specific shareholder.

Is this available to me?

The feature is available to any investor that has been shared the 409A valuation data. If you aren't seeing a document in your account, it may be that your portfolio companies either have not received a new 409A valuation since the feature has been released or have not shared the data with you yet. 

LP Status Tracker in Closings

What's New

We launched a new LP tracker in our Closings Tool so fund managers can easily track the status of each LP filling out subscription documents. We clearly show exactly where the LP is in the process and provide instructions for what each LP needs to do to progress and finish their subscription.

How it Works

In the Closings Tab of the entity you’re fundraising for, you’ll see one these six statuses assigned to each LP: 

  • Prospect: LP has been added but the fund manager has not invited them to fill out documents yet. 
  • Invited: LP has been invited to Carta but has not started filling out their documents.
  • In progress: Investor has started to complete documents.
  • Investor Signature Pending: Investor has completed documents and requires two or more signatories. Not all signatories have signed yet.
  • Submitted: Investor documents are ready for review.
  • Countersigned: Documents are complete and the investor has been admitted to the fund.

To get more detail about the specific LP, you can click on each status and get more detailed information about the LPs status such as: 

  • If they are using the help of someone else such as a wealth manager to fill out documents
  • Who still needs to sign if there were multiple signatories designated by the LP
  • What actions does the LP need to take to complete their subscription
  • Timeline of the LPs interactions with the closings process

Additionally from this modal you can manage LP access to your fundraising data room and see who has been interacting with the information in each data room. 




Additional Resources

Check out that walks through the step-by-step process of adding LPs to the closings tool. 

Is this available to me? 

This is now available to any fund managers using Carta's Closings Tool. The Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents.

Adjust taxes for option exercises

What’s new

Companies can now adjust taxes for option exercises previously approved in Carta.

Legal administrators can navigate to the Exercises ledger (Transactions > Exercises) and select "Adjust taxes" within a ledger row dropdown to find the new tool:


How it works

The "Adjust taxes" tool will not be available for option exercises in the "Requested" status since option exercise approvers can adjust taxes as part of the exercise approval workflow.

For ACH option exercises already approved by the company or for company-entered manual exercises, the "Adjust taxes" tool will be available for use.

After a legal administrator selects "Adjust taxes" from the Exercises ledger, they'll see the following modal:

The legal administrator will be asked to provide a reason for the adjustment. Next, the following actions are available:

  • Un-check a box next to a tax type to remove it from the option exercise
  • Re-check a box to re-add a previously removed tax type to the option exercise
  • Update the specific tax withholding amount in the "Adjusted" column
  • Select "Add another tax type" to add a new tax type to the option exercise

Note that new tax types can't be added from this modal. If you'd like to add a new tax type to the exercise, add it first in the Tax rules page (Compliance > Tax rules) and then come back to the "Adjust taxes" tool to add it to the option exercise.

Once the adjustment has been saved, both the company and the stakeholder will see a blue banner when viewing the option grant. The banner contains information about the newly adjusted tax amount and exercise cost in addition to when the adjustment was entered in Carta:

Adjusted tax amounts will also be reflected in the "Exercised and settled report" and the "Tax withholding report" (Capitalization > Reporting).

For more information, check out the support article for the new "Adjust taxes" tool: https://support.carta.com/s/article/adjust-taxes-option-exercises

Who this affects

Private and public companies that issue option grants.

Timing

Available to all companies now.

Bulk Add LPs to Carta's Closings Tool

Whats New

We've made it easier to quickly add LPs to Carta's Closings tool. Using a new spreadsheet in Carta you can now easily input details about each LP or simply paste information from another spreadsheet or tool. 

How it Works

There's a new "Bulk add partners" button on the closings tool that will open up the new spreadsheet where you can add LPs. You'll need to fill in the following information about each LP: 

  • Partner name: The name of the individual or entity that is subscribing.
  • First and Last Name: This will be the name of the primary contact for the LPs commitment. The LP can always update this and add additional contacts when they’re filling out subscription documents.
  • Email: The email address of the individual who will be filling out subscription documents for the partner.
  • Commitment amount: The amount the LP will be committing to the fund or SPV. You must enter a commitment amount but this can be updated at any point prior to the LP signing. 

Additional Resources

Here's a support article that walks through the step-by-step process of adding LPs to the closings tool. 

Who this affects

This is now available to any fund managers using Carta's Closings Tool. Our Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents. 

Instant KYC for Non-Individual LPs Completing Subscription Documents

Non-individual Limited Partners who complete subscription documents on Carta can now be KYC’ed instantly.

What’s New

This release is a follow-up to our KYC for Individual LPs feature. If your fund leverages Carta’s KYC/AML service and you have non-individual Limited Partners (LPs) completing subscription documents in Carta, these LPs can now be instantly KYC’ed on the platform. Carta instantly KYCs the LP's control person and beneficial owner(s) in addition to the LP entity itself.

Carta’s instant KYC feature is made possible by Carta integrations with identity and verification databases like LexisNexis, Ekata, Socure, and more.


Limitations

  • For this release, only US-based LPs are supported for instant KYC. Future releases will extend support to non-US LPs


How it Works

  1. As an LP completes their subscription documents, non-individual LPs (for funds that avail of Carta’s KYC/AML service) will see a dedicated Know Your Customer section. Upon landing here, LPs will first be asked if their control person and beneficial owner(s) are all US persons - 





  2. If the control person and beneficial owner(s) are all US persons, then the LP will be shown forms to enter KYC information for these individual(s) -






  3. Finally, the LP is also able to upload any entity formation documents and photo IDs here:



  4. Once subscription documents are signed by the LP, the following are instantly KYC'ed: the LP entity, control person, and beneficial owner(s). If all pass KYC, this is immediately reflected in the Carta UI and General Partners are notified to countersign -


    Timing: Rolled out to all on Aug 31, 2021

    Audience: US-based Limited Partners, General Partners


VC Firm Access Update

What’s new

We're updating firm permissions to be more granular for larger firms, while keeping them easy to manage for emerging managers.

Fund Admin clients on Carta will now have the ability to grant users on their accounts access to only the information they need: Investments, Limited Partner information, Fund Admin, and Fund performance data.


How it works

Admins on a VC firm account have the ability to add users and update their permissions. Permissions are controlled under Settings on a firm account. Non-admins can go to the Settings page to see who the admin on their account is.

Basic VC firm accounts on Carta will be able to grant users Admin or Investments access.

Firms that use Carta for additional services have the ability to grant users additional permissions for each fund in the firm.

Permission

Grants access to

Admin

  • Add, update, or remove other users on the firm
  • Accept securities on behalf of the funds in the firm
  • Update payment information for the funds in the firm
  • Complete tender offers on behalf of funds in the firm
  • Use the portfolio merge tool

Investments

  • Company information for companies that fund has invested in
  • Schedule of investments

Partners

  • Access to partner information, including contact information, commitment amount, and parter documents
  • Access to fundraising and closings tools

Fund Admin

  • Access to fund administration information, including capital calls, distributions, and quarterly reports
  • Ability to communicate with fund admin team through Carta
  • Ability to request and approve fund admin updates

Fund Performance

  • Access to fund performance data

Audit

  • View only access to investments, partners, fund admin, and fund performance data
  • Users with audit access cannot have other access to the fund

Defaults

For each user, an Admin can grant them “default” access to the firm. Defaults will automatically give users these permissions for new funds that are added to the account.


Additional Resources


Who this affects

This update affects all VC firm users on Carta. Users will not see a difference to their existing access with this change, but going forward Admins can update permissions.


Timing

We are rolling this out to a small number of firms starting on August 30 and plan to roll out to all firms within a few weeks.

Request for Information Dashboard Improvements

What’s new?

Portfolio Insights clients now have a more granular view of the requests for information they send to their portfolio companies. The request for information dashboard has been upgraded to include document type and status for each portfolio company, as well as a timestamp of the portfolio company’s last submission.

Along with making the request for information (“RFI”) dashboard more granular, it’s possible to configure exactly what is requested of each company, lessening the burden on portfolio companies and ensuring a streamlined process. Click here to learn more about RFI configuration.

It’s also now possible to cc multiple people on RFIs, ensuring anyone and everyone from your team is kept apprised of the quarterly collection process.

Questions?

For more information regarding the RFI dashboard, or Portfolio Insights, please reach out directly to your Portfolio Insights account manager or portfolio-kpi@carta.com.

VC Fundraising Data Room

What’s new?

Fund Managers are now able to set up a fundraising data room as part of our VC fundraising process. The Carta platform makes it easy to run the entire fundraising process in one place – from creating your data room to closing your fund with our subscription document process.

Key features of this data room include:

  • Integration with fundraising and subscription document experience
  • Easy control of access for GPs
  • Tracking documents viewed and visits to data room by user
  • Watermarking documents
  • Ability to require NDA signing 

How it works:

The fundraising data room is integrated into the Closings process. Any fund on Carta can use this data room with or without our subscription documents.

Setting up a fundraising data room

  1. Carta staff will create a fund and turn on Closings for you. On the Closings tab, the user will see the option to set up a data room
  2. After clicking Set up, users will see more information about what the data room offers. Then users can set a name and choose which settings to apply to this data room.
  3. After the data room is created, documents and folders can be uploaded to the data room.

Viewing / Removing access

Firm users can see which users have access, which partner they are associated with, and the option to remove access from the Access section of the data room.


Viewing Potential Investor Activity

Firm users can view LP activity, which is often an indicator of how interested they are in the fund, by looking at the Activities section of the data room.

Watermarking

If funds turn on the watermarking feature in data room, all downloading PDFs will have a watermark containing the user's name, email, and time of download.

LP access to data room

LPs can are invited to the data room through the Closings tool. They will receive an email invitation to view documents in the data room.

LPs can use the Request subscription documents button to request documents from the fund. When LPs are done viewing the data room, they can click Dismiss task to remove the task from their tasks section.

Who can use this?

All investment firms on Carta. Contact your fund administrator or investorservices@carta.com to turn this on for your fund. Read more about the details of how to use this on our support site.

Timing:

This is available to all investment firms as of July 21, 2021



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