Improved Capital Call and Distribution Notices

What's new?

GPs can now include a detailed breakdown of capital in their capital call and distribution notices to maintain transparency with their investors.

What’s important or valuable about this change?

Institutional investors prefer to see a breakdown of capital versus a lump sum for internal reporting purposes. We make it easy to provide inventors that information:

Capital calls: Specify what dollar amount or percentage of the amount called is going towards investments, expenses, management fees, and more.

Distributions: Break down the return by dollar amount or percentage into capital, realized gains, or income.

What do I need to do?

On the Overview tab of your portal, select the entity, then navigate to the Capital Activity tab. Click Request Capital Call and follow the steps. Specify the breakdown of capital in the Notes for your Fund Administrator section.  

For distributions, click Request Distribution and complete the steps above. 

Once submitted, it will appear on the capital call or distribution notice for your review and approval.


How do I learn more or get help?

Have additional questions about Carta’s capital activity? Reach out to your account manager or request a demo today. 

 

Improved Investment Valuation Updates

What's new?

GPs can now easily submit valuation updates where positions on an investment have different values or prices per share.

What’s important or valuable about this change?

We’ve improved our in-app valuation updates to be able to handle advanced scenarios, including submitting an update where each asset has a different price per share. This is common for GPs who have invested in the same investment across multiple rounds. 

What do I need to do?

Navigate to the Activity tab of your portal and select Valuation Update. Then select the company whose valuation you want to update. 

Select Spreadsheet View and enter the date for when the valuation took place. Enter the new value per share to see the gain or loss across all positions.

Then review your valuation update and submit.

How do I learn more or get help?

Have additional questions about Carta’s valuation updates? Reach out to your account manager or talk to one of our representatives today. 

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.

GP Activity Tab

What's new?

We’re introducing a new way for Carta GPs to have greater visibility into their relationship with their fund administrator.

What’s important or valuable about this change?

GPs can now submit, view, and track the progress of their fund admins tasks, like sending capital calls or preparing financials. Fund managers will receive a notification for any outstanding tasks or if there’s an action required.

GPs can use the Activity tab to stay up to date on critical fund events, like reviewing financials or management fees. 

What do I need to do?

On the Overview tab of your portal, navigate to the Activity tab.

You can view and complete tasks assigned to you by your fund administrator. Click Details to view additional information about the task like the date it was created, progress, and status.


Scroll down to see what your fund admins are working on. Click Details to view additional information about their task like which fund admin is working on the task and the progress. 


Easily request a capital call or submit a valuation update. Once submitted, it will appear in the fund admin section for you to track to completion. 


Select Task History to view an archive of all past tasks completed by you and your fund administrator. 


This feature currently services capital calls, valuation updates, SPV formations, and reviewing and approving management fees, SOIs, and financials. 

We will be making further improvements to the Activity tab over the coming weeks including the ability to request a wire, submit an expense, and message with your fund admin.

How do I learn more or get help?

Have additional questions about the Activity tab? Reach out to your account manager or request a demo today. 

Private Dilution Report (Beta)

What's new?

Private dilution reports can be run on Carta.

How does it work?

Private company administrators will be able to run a dilution report that will provide them with diluted shares, average trading prices, and supporting tabs to back out the incremental shares tab. 

In this initial release, the following inputs will be available:

  1. Average and weighted average trading prices, including the ability to add Fair Market Values on weekends and holidays
  2. Diluted shares
  3. Supporting tabs to help users recalculate their incremental shares tab

In the future, Carta will also support:

  • Pre stock split values in dilution reports
  • Weighted average shares outstanding (WASO)

What do I need to do to get started?

To participate in the beta and receive early access to this report, please reach out to us at 718@carta.com.

Limited Partner Mobile Experience

What's new?

LPs can now manage their investments, all from their mobile device.

What’s important or valuable about this change?

Access your investments, now on the go.

LPs can manage their fund investments and personal investments from anywhere, at any time.

What do I need to do?

Download the Carta mobile application, suited for iOS and Android devices, from your app store. Then login using the same information used to login to your LP Portal on the web application. Once on the home screen, select the fund investment or personal investment you’d like to view: 

If a fund investment is selected, you’ll be able to view key investment details like called capital and net asset value. Plus, you can view, download, and send all fund investment documents like partner capital account statements (PCAPs) and  K-1s. 

If a personal investment is selected, you’ll be able to view key ownership information like share amount and issue date. 

For fund investments, once on Investment Details, scroll to access your fund documents. Select View all  to view, search, and filter all fund documents. Use the search bar at the top to search by document name. Or select Filter to filter by document type like PCAPs, capital calls, or tax. 

Once your document is selected, select the export button to markup, send, or download.


How do I learn more or get help?

Have additional questions about Carta’s LP mobile experience? Reach out to your account manager or request a demo today. 


Third Party Audit Partner Portal has Launched

What's new?

Carta has empowered our audit partners by creating an audit partner portal that will house all relevant documents to successfully complete a fund audit. 

We have launched this portal to make it easier to organize and streamline responses to questions and requests from auditors which historically have taken time and effort to consolidate.

What’s important or valuable about this change?

Audit Partners will have one location to go to find all of our documents. Fund administrators can easily organize and check for outstanding documents. This will save time and effort for auditors and fund administrators, making the end-of-year easier for our customers by proxy.

Documents that will now be added to this list include:

  • Formation Documents / General Docs

    • LPA
    • EIN Confirmation
    • Formation Certificate
  • Partners’ Equity

    • Subdocs
    • W8/W9
    • Investor Side Letters
    • Transfers docs
  • Executed Investment Documents (Deal Docs Team)

    • Certificate of Formation / Incorporation 
    • Stock Purchase or Closing Volume, Convertible Promissory Note, Sub Doc
    • Most recent cap table
  • Bank Statements
  • Invoices missing from Journal Entries
  • Management fee and interest calculations

Fund administrators will add these to the portal or request them from customers when appropriate. 

What do I need to do?

Generally, you do not need to do anything as this will affect third -party audit partners for the most part. However, there are a few things you can do to ensure that this offering is as strong as possible:

  1. Ensure that you have selected an audit partner for your end-of-year needs.
  2. Send all of your audit-related documents (see list above) to your fund administrator. You can do this by uploading them in the app, or sending them to your FA via email.
  3. Work with both your audit partner and your fund admin on questions about these documents over the course of the end-of-year audit process. 

How do I learn more or get help?

You can ask your fund administrator or your audit partner if you have any questions. However, it is important to know that this predominantly affects your audit partner, not you as the customer. 

Have additional questions about this or are you curious about what your tax and audit partner will do this end-of-year season? Check out our VC Tax and Audit Support Article here

Performance Metrics are Now Available on Capital Account Statements

What's new?

Carta is thrilled to announce performance metrics can now be shown on the capital account statement. Fund preparers now have the ability to include performance metrics including TVPI, DPI, RVPI, and Net IRR.

Note that customers need to reach out to their fund administrator to activate this offering. 

What’s important or valuable about this change?

Institutional investors will use this as they require these metrics for their ILPA reports. This feature brings fund preparers one step closer to being ILPA compliant. Additionally, this streamlines access to these metrics for multiple stakeholders including customers, auditors, LPs, and more.

Depending on their strategy, users can toggle these on or off from their statements. 

What do I need to do?

Reach out to your Fund Administrator to request that these be turned on. Note that you cannot do it in the application.


See the example below:

Contact your account manager or fund administrator for more information or questions.

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

Capital Activity Tool

What's new?

Capital calls and distributions have historically been completed via communications directly with your fund admin outside of Carta’s Platform. This system led to potential delays due to a lack of transparency and tracking capabilities. 

Carta has now launched the new and improved Capital Activity Tool. This combines capital calls and distributions on Carta’s platform, enabling your fund admin to complete your requests easily from within while maintaining transparency and communications with you and your stakeholders.

What’s important or valuable about this change? 

Carta has reworked our capital call and distribution processes to streamline your capital to get it to where it needs to go as quickly as possible. 

 The new capital activity tool does the following:

  • Combines capital calls and distributions under one tab for your fund admin team 
  • Handles complex net events where LPs are being called and distributed value at the same time
  • Allows for distributions to use the same in-app GP approval flow that cap calls use
  • Allows for distributions to use the same pro rata math to auto-populate figures that cap calls have
  • Adds itemization support (bucketing) so journals and cap call notices can detail how much of a cap call is for expenses, fees, and more
  • Calls outside commitment are now supported 
  • Cap calls can use dynamic fields for notice building (previously distributions only)
  • The support section is now customizable on notices
  • Progress (LPs paid) figures are now accurate 
  • Tracks partial amounts from LPs

With this new infrastructure, Carta will start adding features at a high velocity. Stay tuned for improvements to in-kind support, notice customization, scheduled LP reminders, sub-close interest, and more.


What do I need to do?

Continue to call capital via the in app process. This will primarily affect your fund administrators. We will transition all funds to this new process shortly. 


How do I learn more or get help?

Please refer to these screenshots for a sneak peek of what your fund admins can now select. 

Your fund admind can now select from a menu of options in the Capital Activity Tool, including:

  • Capital Calls
  • Subsequent Close Call
  • Distribution
  • Custom Event 


Fund admins can now add a due date and the contribution event easily.


Fund admins can now select from a variety of buckets for your capital activity and decide how to allocate across investors. 



Fund admins can now get more granular with data, allowing them to make sure they call and distribute the correct amount for each stakeholder. 



Track all of your capital activity in one easy location. 

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