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.

Qualified Small Business Stock (QSBS)

What’s new

Companies using Carta for 409A will now be additionally assessed for qualified small business eligibility at no extra cost to the company.

Certificates issued by a qualified small business as determined by Carta will have a "QSBS" tag in the product to indicate that the shares represent Qualified Small Business Stock (QSBS). The goal of these tags is help stakeholders make more informed selling decisions.

The IRC’s definition of a qualified small business is restrictive yet vague and open for interpretation at the edges, so potential holders of QSBS should consult their tax advisor before making decisions to sell and claiming the QSBS tax benefit.

How it works

Based on company-provided information during the valuations process, Carta will assess the following criteria for qualified small business eligibility:

  • Company's gross assets are $50M USD or less
  • Company is an active business
  • Company is a C-corp
  • Company does not operate in excluded industries

If a company is identified as a qualified small business, a new badge will appear in the 409A dashboard:

If a stakeholder receives a certificate from a qualified small business but hasn't yet met the 5 year holding period for QSBS, they'll see a "QSBS eligible" tag in their portfolio:

Drilling into the security, the stakeholder will see some additional information about the QSBS status of the certificate:

Stakeholders who have held shares issued by a qualified small business for 5 years will see a "QSBS" tag in their portfolio instead:

Additional Resources

For detailed information about QSBS in Carta, please refer to our QSBS support article.

Who this affects

Companies using Carta for 409A and their stakeholders.

Timing

  • Available now to 50 randomly selected 409A customers
  • General availability for all 409A customers coming in two weeks

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.

[Early Access] Live Chat Support

Carta now offers Live Chat Support to Early Access Users. 

Who does this affect?

Law firm users and companies in Carta Launch 

What’s new?

Users can now opt to chat live with a Support Agent, in addition to the traditional Phone and Email Support. 

They can simply access the Help Center by clicking on the dialog balloon at the bottom right of the screen, where the Live Agent option will be available. 


After accepting the terms and conditions, the user will be connected to a specialized Support Agent. 

This rollout builds upon Carta's investment in a modernized approach to how our customers receive assistance in-app, enabling easy access to multiple engagement types to fit the context of the question, including: 

  • Chat
  • Voice and video
  • Co-browse
  • Screen-sharing 

All within the Help Center in-app! 

Get Help!

Carta is making it easier to get the answers our users need, when they need them. Introducing our one-click Help Center.

Who does this affect?

Company administrators and viewers, law firm users, and personal portfolio holders

What’s new?

Users can now access Carta's Help Center in one click by going to the dialog balloon icon at bottom right of the screen, where they can ask questions about the platform's workflows, products and features.  

Carta's Natural Language Processing technology will find the most helpful Support Articles for that query within our knowledge base, and provide users with the right answer for their questions.

In the event a question needs to be escalated to a Support Agent, Carta users can also raise Support Cases without leaving the page, and they will have multiple support options available to fit their engagement preference.

Email Cases created through this workflow leverage user's session data and context to quickly route the Case to Subject Matter Experts, leading to faster resolution times. 

When Phone is selected as the preferred method, the most appropriate phone number is displayed based on the user's type and question, ensuring users get connected to the right Support Agent for their need, without inconvenient call transfers. 

Learn more about Carta's Help Center

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