Share Class Manager Improvements

What’s new?

The Share Class Manager page will be updated this coming Monday, February 6th to make it easier to navigate, and provide a consistent experience when you are updating AOI terms.

We no longer display a "Link AOI" button at the top of the page. The new flow is designed to be simple and intuitive, with the "Manage Share Class" button giving you access to update existing share classes, add new share classes, and link Articles of Incorporation.

What do I need to do?

Navigate to Capitalization > Manage share classes. Under Manage share classes, there will be three options:

  • Create new share class
  • Edit existing share classes
  • Add historical AOIs

Where can I learn more?

Visit the Share Class Manager support article or contact us via the In-App Help Center.

Introducing Agreement Execution for issuing new interests

What's new?

You can now generate fully executed legal agreements when issuing interests with Carta LLC.

What's important or valuable about this change?

With the new Agreement Execution functionality, you can simplify the end-to-end issuance workflow, increase efficiency, and auditability:

  • Set up interest agreement templates and automatically populate them with data from Carta, such as each interest holder's information, interest type, number of units, and more
  • Send these interest agreements to the holder to collect their signature directly on the PDF
  • Save the fully executed agreement in Carta with the interest so you and the interest holder can access it for audits, personal finance, or tax use cases

What do I need to do?

To get started with Agreement Execution, you will need to first work with our team to set up a new interest agreement template. Get started by navigating to Documents > Templates.

 

Request a new template by clicking on the button on this page.

You need to provide us with the following items to set up a new template:

  • An interest agreement template document in .docx format

    • Include a line for where the holder should sign
    • Include a pre-populated company signature, if applicable (Carta does not populate any signatures besides that of the holder)
  • A list of fields for Carta to auto-populate in the document

    • Today, we can populate any issuance and holder data and certain data relevant to the account and entity

Once your template has been set up, Carta Staff will notify you and you can use it to issue new interests. Watch our demo video to learn more.

How do I learn more or get help?

For more information on interest agreement templates, please read our support article.

Customize cap table views

What's new?

Admins now have the ability to sort the interest type columns in cap table views.

What's important or valuable about this change?

You have one more option to customize the cap table view to your preferences. You can now sort the interest type columns in the cap table views to reflect how you want to view and export data.

What do I need to do?

On the cap table views page, click on Columns. You can show, hide, or rearrange the interest type columns by dragging and dropping them in the order you want. Within each interest type, you can also show or hide specific columns.

Any changes you make to the interest type columns in cap table views will also be reflected in the export.

How do I learn more or get help?

For more information, visit our support site.

Data room usability enhancements

What's new?

Admins can now download data rooms, update access permissions, and view a complete activity log to see who is viewing files stored in your data rooms.

What's important or valuable about this change?

  • Download data rooms. You can now download each data room as a zip file and maintain the folder and file structure, allowing you to share these files with anyone who doesn’t have access to Carta.
  • Update access permissions. Review and update who has access to a data room. You can easily remove access from anyone you previously invited to a data room with, whether they accepted the invite or not.
  • View an activity log. See a history for each data room, folder, and file,  including views and downloads. This is especially useful if you have shared a data room for due diligence with potential investors because you can gauge their interest.

What do I need to do?

To download a data room, navigate to the menu on the right side of the data room and click Download

To update access permissions, navigate to Manage data room > Manage sharing. You can see who the data room was previously shared with and can remove their access.

To view the activity log, navigate to the menu on the right side of the data room and click View activity

This can also be done at the folder or file level, showing a filtered list depending on where the activity log is accessed from.

How do I learn more or get help?

For more information, visit our support site.

Introducing estimated values for equity

What's new?

You can now enable estimated values for interests. Carta can automatically calculate and provide estimates for vested, unvested, and outstanding values as well as threshold gain or loss for profits interests, and MOIC.

What's important or valuable about this change?

You can demonstrate the value of equity to interest holders, including employees, investors, board members, and advisors. They can see estimated values for their interests in their Carta portfolio.

There are multiple values available for you to choose from and each value includes information on how it is being calculated, which improves transparency.

You have the flexibility to choose whether you want to calculate estimated values at all, make the values visible to Admins only or to Admins and interest holders.

What do I need to do?

Equity value estimates are based on the latest per-unit value. A per-unit value can come from a Carta 409A valuation or company Admins can manually input values obtained from other sources, such as a board determination or a recent fundraising round.

Add estimated value while creating a new Interest Type

Complete the flow until you reach the section Estimated value.

Click on the drop-down Visible To to select who should be able to view the estimates. Note that you have the ability to determine whether only company administrators will have access to the estimates or if holders will also be able to see them.

Add estimated value while editing an Interest Type

Under Interests and interest types, click on the interest type and on View interest type details.

Click on Edit on the right side of the Estimated values section.

Click on the drop-down Visible To to select who should be able to view the estimates.

Estimated values will be visible to interest holders in their Carta portfolio.

How do I learn more or get help?

For more information, visit our support site.

On-demand educational content for employees with Tax Advisory

What's new

Employees who have access to Carta Tax Advisory through their employer now have access to on-demand educational content in their Carta portfolio. As an employee, you have the ability to re-watch your company’s recorded webinar, as well as view chapters of key concepts about your equity. The video chapters cover topics such as exercising your option, selling your options and other important topics.


Who this affects

This feature is available to employees who have access to Carta Tax Advisory through their employer. Employees will be able to view their company's recorded webinar once it has been completed.

Where to find it

As an employee, navigate to the Learn section of the Tax Advice page in your Carta portfolio. If you have any additional questions, please schedule a session with an Equity Tax Advisor.

Wire Instructions Update

What’s New

We have made UI improvements to our Wire Instructions for online wire exercises. The new UI better highlights the amount, timeline, and considerations for completing the transfer. The updates include:

  • User and exercise specific details such as grant, company, option holder, date, and amount.
  • Clearer instructions for the bank on how to handle intermediary fees with specific SWIFT payment instructions. 
  • Approval and reminder emails now show the last day for Carta to receive funds, so the exercise can be complete.

Who this affects

All international users who are exercising options via online wire. 

How it works

The updated Wire Instructions will be available in the same places as before (Tasks view, PDF, Exercise Progress view). You can see the new templates here:

Tasks view


PDF

Exercise Progress view

Email communication

Both Approval and Reminder emails show the date for Carta to receive funds.

Timing

  • Available on all online wire exercises starting 11/30/2022

Additional Resources

Support Article: Exercising Via Online Wire

Interest holder addresses

What's new?

You can now keep a record of interest holder addresses.

What's important or valuable about this change?

Gain a single source of truth with all interest holder information centralized in Carta. Admins can now input a physical address when adding a new interest holder or editing an existing one and this address can be viewed in the interest holder ledger and in the interest details.

What do I need to do?

When issuing interests to new holders, Admins can now bulk upload addresses in the interest holder spreadsheet. You will see different columns for different address fields. Upon issuing, the address will be saved on the new interest holder.

When adding a new interest holder or editing an existing one, Admins can record the address in the new Address section. Inputting the Country/Region will make the other address fields appear.

How do I learn more or get help?

For more information on managing interest holders, visit our support site.

Exercising options and warrants

What's new?

We’ve simplified Carta’s UI to help Admins exercise multiple options or warrants in one streamlined workflow.

What's important or valuable about this change?

When interest holders elect to exercise their outstanding options and warrants, you can now enter the exercises all together in Carta to reflect the transactions on the cap table. You can also issue new interests to the holders and keep a record of the transaction in the interest history.

What do I need to do?

In the interests ledger, navigate to the interests you want to exercise in the left sidebar. 

Select one, multiple or all interests.

Navigate to the Action button and select Exercise.

The new UI will walk you through exercising the interests, including:

  • Reviewing the destination interest type that this interest will settle into once it is exercised
  • Specifying the details of the interest being exercised, including the number of units to exercise and the price per unit
  • Specifying the new interest details, including the invested capital amount, issue price, and any applicable custom fields
  • Reviewing everything and confirming the exercise

After you confirm, the interests resulting from the exercise will be issued, affected interests will be updated, and cap table reports will reflect the exercises. You can also view the transaction in the interest history.

How do I learn more or get help?

For more information, visit our support site.

Introducing the ability to adjust vesting end dates

What's new?

You can now adjust the time-based vesting end dates in custom vesting plan templates.

What's important or valuable about this change?

When creating a new custom vesting plan template, you have the flexibility to customize whether vesting occurs on the same day of the month as the start date (no adjustment), on the first day of the month, or on the last day of the month. 

With this new capability, you can customize time-based vesting schedules to set up more vesting clauses and align vesting dates so interests vest on the same day.

What do I need to do?

When creating a new custom vesting plan template, you can find the end date adjustment option in the Time-based vesting section. You can choose between no adjustment, last day of month, or first day of month.

How do I learn more or get help?

For more information on managing vesting templates, please visit our support site.

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