What’s New

Easily and securely share financial statements as part of your investor updates. Connect directly to your accounting system, select the desired time frame, and include a one-time snapshot of your financials in your next investor update – all within Carta’s investor updates tool. 

Why is it Valuable

Most portfolio companies send investor updates once a quarter. With a one-time setup to connect your accounting system, you can make all future updates faster, easier, and more comprehensive for both you and your investors. 

Easily select and review financial statements before sending. Using Carta’s communication center, you can control who sees your data, conveniently import your investor list from the cap table, and allow investors to securely view and reply to your updates—including cap table and financial statements–all in one centralized, trackable location.

How does it work

You can set this up by:

1. Get your Quickbooks or accounting software login information
2. Navigating to your Carta account
3. Go to the Communications Center
4. Click on ‘New Message’
5. Choose any template you want to update your shareholders about
6. Under import financials click Connect to use QuickBooks or See all for the other providers available

1. Once you’ve prepared connecting your accounting system and composed your investor update, you can review your financial statements. 

1. In the review screen you view the data from your accounting system, select the period, and add notes you want your investors to see alongside the data. 
2. After you submit the investor update message with the imported financials, the financials will appear under Company Financials view.

What recipients will see:

1. After a message is sent, the recipient receives an email notification with a link to view it. 
2. New users are prompted to create an account, while existing users are taken directly to their Carta inbox.

1. If financials have been imported, the investor will be able to click View Company Financials link and view the uploaded documents directly in the Financials tab, monthly and quarterly view.

Who is this for?

Authorized company administrators or users with the new Investor Relations permission, can set up the financial integration and send messages to investors through the communications center.

How do I learn more or get help?

Learn more about our Investor Updates and Communication Center here. For feedback about this new feature, communication center, or Carta you can reach out here!

What’s new?

We have added a new peer group category to view salary, total cash compensation, and equity benchmarks – based on capital raised. 

How do I view new benchmarks?

You can view the new capital raised-based benchmarks by visiting the Benchmarks page and selecting the peer group filter. The new peer groups will be in the dropdown alongside the current peer groups based on post-money valuation and headcount.

How do I use these new benchmarks in my Compensation Plan and Scorecards?

We are working on a future update that will allow companies to use any of our peer groups in their Compensation Plans and Scorecard. 

Questions?

If you have any questions or feedback about these new benchmarks, please reach out to your Customer Success Manager.

What’s new?

We have updated salary, total cash compensation, and equity benchmarks for all job areas and specializations across both valuation and headcount based peer groups.

Benchmark Trends

In aggregate, salary and total cash compensation benchmarks are slightly higher than our last release, increasing by a bit more than 1%. These increases were consistent across all valuation peer groups and levels. Similar to previous updates, specialization level data continues to change more than the broader sample, as sample sizes for these roles are smaller than job area level data.

Equity benchmarks are increasing in aggregate, showing about a 3% increase versus last quarter. Similar to last quarter, increases are fairly tightly correlated with company valuation, with higher valuation benchmarks seeing the largest increases.

What were the largest areas of movement from these benchmarks?

Salary - Salary benchmarks for most job areas and specializations are within 2% of last quarter’s data. Social Media Marketing and Logistics & Supply Chain saw the largest increases versus last quarter

Equity - Equity benchmarks are generally within 5% of last quarter’s benchmarks. There is more variation by role in this quarter’s release, with Recruiting, Strategy, and Partnerships showing the largest increases. Mobile, Logistics & Supply Chain, and Art & Graphic Design are showing the largest decreases

How do I update my benchmark version?

You can also preview the new benchmarks on your Scorecard by navigating to the Benchmarks page and clicking on the "Preview benchmarks" bubble in the top left.

Here you will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your Scorecard before accepting the new plan.

Questions?

If you have any questions about these new benchmarks, please reach out to your Customer Success Manager.

This week we rolled out a new feature for Investors: AI powered document extraction in the Cap table builder. Investors can now upload relevant documents about a company in their portfolio (Articles of Incorporations, Stock Purchase Agreements, Convertible note and SAFE agreements, have those documents automatically populate the fields the cap table builder.

How it works:

1. Investors can add a new company (or edit an existing company) in their portfolio

2. When adding a new company they can input the company name and upload any of the documents they have about the company's ownership structure

3. The cap table builder will read the documents and begin to build out the structure of the cap table

4. The feature will then guide the user through the cap table builder with any field read from the documents pre-filled. This includes the ownership structure and the funds holdings, provided they were available in the Articles of Incorporation and Stock Purchase Agreements.

5. You can review and edit any field in the builder. Once complete it will guide you to the capitalization page of the new portfolio company. 

4. As your portfolio company's cap table evolves over time, you can edit the cap table for any changes using the same workflow.

You can edit the company via the Investments page (Investments > Manage portfolio > Edit) or on the company's capitalization page directly (Company > Capitalization > Update cap table)

Benefits of using Cap table builder:

1. The cap table builder allows investors to load in any of their portfolio companies not using Carta to share their cap table with them. 
2. By adding a portfolio companies cap table into their portfolio, investors can:
   1. Use the Scenario modeling and waterfall tools
   2. Create and run ASC 820 valuations
   3. Track ownership over time
   4.  Have a single source of truth for all their portfolio companies' cap tables.

As part of this release we are now enabling Cap table builder for all funds who pay for any of Carta's fund products!

If you have any questions or feedback you can reach us here!

This week we are rolling out the ability for users to bulk review and accept certificates sent to them on Carta. This release enables investors to bulk accept certificates with portfolio matches, significantly reduces the time needed to accept. The new experience includes: improved user experience, new tooltips, ability to bulk sign and request table access.

Here's a preview of how the feature works:

The feature is live today and will be rolled out to all users over the next two weeks. If you have any other questions, you can contact Carta here.

LPs can now nominate a witness to provide a digital witness signature to their subscription documents during closings. 

What’s new?

Certain jurisdictions legally require a witness for subscription documents. A witness is a third-party individual who observes someone signing a document and provides a signature themselves to confirm that the original signature is genuine.

Previously, signature witnessing was a clunky process which involved downloading and signing physical documents. Now, signatures can be securely witnessed online in a few clicks. 

Who is it available for? 

Digital witnessing is available to fund administration customers and their LPs when closing a fund domiciled in the UK, Jersey, Singapore or the Cayman Islands.

How do I use it?

As an LP:

Upon signing the subscription documents, you will be prompted to add a witness and enter their details to complete signing. The witness will then receive an email. You can nudge the witness by resending the signature request email. 

As a witness:

You will receive an email informing you of the witness signature request.

Follow the link in the email to witness the signature on the LP’s subscription documents. 

After you have signed, you’ll receive an email confirming that the process is complete. 

As a GP:

You’ll be able to track the progress of signatories within Carta. 

When all signatures are complete, you can countersign the subscription documents. 

What’s New?

We’re making improvements to streamline Restricted Stock Awards (RSA) management on Carta. 

• Automatically assign the issue date once stakeholders accept their RSAs
• Forfeit unvested RSAs at termination instead of repurchasing them
• Clearer legal language and displaying all attached documents during acceptance

Automatically assign the issue date once stakeholders accept their RSAs

When RSA payment is complete, company admins can confirm the payment date at Carta to trigger the acceptance workflow in Carta. By automatically populating the issue date as the day of acceptance, this eliminates the need for company admins to retroactively update the RSA issue date. 

How it works

1. When an RSA has been released from draft, it will appear as a new status called waiting for payment
   
   
   
   
   
2. Enter payment details by clicking to the right of the table and selecting "Enter payment details"
   
   
   
   
3. On the enter payment details screen, enter the date the RSA payment was processed offline
   
   

4. Once the RSA has payment date has been entered, the status will change to waiting for acceptance, and the securities will be sent to signatories to review and sign.  

5. The RSA will not have an issue date up until it is accepted by the stakeholder. When the RSA is accepted, the issue date will automatically be assigned as the date accepted.

------------------------------

Forfeit unvested RSAs at termination instead of repurchasing them

RSAs can now be forfeited rather than repurchased at termination. Users can now choose to automatically forfeit unvested shares or require a repurchase to return shares to the pool.

How it works

Under the Unvested RSA Behavior column, user can assign a new status: 'Forfeit unvested shares' to automatically forfeit unvested shares upon termination.

Clearer legal language and displaying all attached documents during acceptance

During acceptance, RSA recipients will see updated legal language for RSAs, encompassing the legally binding nature of accepting those securities at Carta. Holders must also agree that they have read and accept the attached documents before finalizing acceptance. 

How it works

New dedicated tab for accepting RSAs

New acceptance screen with updated legal language and new document references

------------------------------

Who is this Available For?

You can now access these updates as a Carta company administrator. Whether handling standard RSAs or RSAs for services, you’ll find it easier to keep your cap table in sync with legal documentation.

Anything Else I Need To Know?

While the attachment of supporting documents is optional during the RSA setup, ensuring they’re available during the review can help streamline administrative reviews and future audits. Refer to our support site for additional guidance on managing RSA transactions.

When your financials are ready to be published, you now have the option to share them with a separate file attachment instead of grouping the attached file to the financials document. This means that your LPs will receive 2-3 separate files (depending on if you are also sharing PCAPs) in their Carta account and/or email for them to download.

To do this, navigate to the financial package that is ready to approve. Select approve and publish or approve and schedule. Check yes next to the question 'Would you like to send the package with an attachment?' and select 'Attach as separate file' to the question 'How would you like to attach the file?'. You will then upload the file, indicate what type of document it is, and name it. 

Once published, you will see the documents in the Fund > Partners > Documents page. That same document can be found on the LPs side in their portfolio. 

If you selected to notify the LP about the documents shared, the LP will receive an email notifying them of the new documents existence.

Tactyc now integrates real time cap table data into its forecasting and planning platform. The connection to Carta streamlines the process of adding investments data in Tactyc, providing fund managers the ability to make data-backed decisions with greater speed and accuracy. 

Why is this valuable:

Historically, investment updates have needed to be manually uploaded and maintained in Tactyc. This process is often time-consuming and error-prone, making it difficult to ensure current forecasting for your fund is accurate and up to date. 

You can now sync ownership and financing history for all portfolio companies tracked on Carta. Starting from the fund's initial investment, all subsequent financing rounds will get pulled into Tactyc, regardless of whether you participated or not. The new Tasks and Notifications page will also prompt weekly in-app notifications and review for cap table updates including new rounds for existing investments, net new investments, and newly granted cap table access. 

Overall, the integration accelerates your ability to leverage Tactyc’s powerful forecasting tools and insights. With immediate access to real time cap table data, you can more quickly track how you're following your original fund construction plan across pacing, reserve optimizations, portfolio insights, and more.

Who is this available for:

This integration is available for all Tactyc customers who have an investment firm account in Carta, with accepted securities issued from portfolio companies on Carta.  If you need assistance with portfolio consolidation to one main firm account, reach out to our team at tactyc@carta.com.  

Basic cap table access or higher is also required to pull in a portfolio company's details — learn more here.

How does it work:

1️⃣ Set up the integration by going through a Carta mapping and data review workflow in Tactyc

2️⃣ Once data has been approved, Performance Cases in the respective Investments page will update with Carta sourced data 

3️⃣ Re-sync Carta data on demand, prompting review and approval for Carta updates across new rounds for existing investments, net new investments, and newly granted cap table access.

How do I learn more?

Carta Support Article: How to Leverage Tactyc's Integration with Carta.

Signup for the Carta Product Webinar on April 1.

Anything else I need to know?

Stay tuned for additional release notes in Q2, covering Carta integration enhancements and updates.

Auditors and funds using our pilot audit confirmations tool, can now include additional questions to portfolio companies they send to the portfolio companies.

For Auditors:

When requesting audit confirmations from portfolio companies, you can now select up to 4 additional questions to gather supporting documentation from the portfolio company:

Companies can respond to audit confirmations and optionally attach documents to answer the additional questions asked by their investor's auditors.

Companies using Carta for cap table management can select and share documents already on the platform, or grant investors access to the needed data with just a couple of clicks.

If you are a GP or Fund CFO, talk to your auditor about using this new tool to help streamline your audit!

Auditors interest in joining the pilot can submit an request at: https://carta.com/waitlist/audit-confirm/