Preferred shareholders can request ownership when accepting securities

What's New:

  • Preferred shareholders can now request ownership details (like fully diluted share count or detailed cap table information) when they accept certificates. Previously this request action was available only after the stakeholder's account had been set up and a security accepted. This change helps empower company admins to set the correct respective access levels for investors more effectively. This helps both companies and their investors get the most out of the Carta platform with clearer information sharing workflows.
  • The information management workflow for companies remains the same. Company admins can still select the appropriate level of data sharing access for each stakeholder. For our summary of these levels, we've detailed them here.

Accept screen for preferred shareholders accepting preferred shares:

We will be rolling out these changes during the week of November 2nd. 

Using Custom Spreadsheets When Adding New Stakeholders in Bulk

What’s coming: Admins can now upload new stakeholder information using data stored in custom spreadsheets/reports 

Who this affects: All companies 

What’s better:

For companies that use HR Providers to store their stakeholder/employee information, their company admins can now upload new hire information into Carta in bulk using the HR Provider's report (xls, or xlsx) with minimal modifications.

This workflow is an enhancement to the existing Bulk Add Stakeholders flow, with a new step for users to map the columns in the report to Carta data fields.


Timing: Live for all customers Oct 20.

Changes to Watermark Styling

We've listened to your feedback on watermark styling obstructing the readability of the documents and we've made a few changes to address those concerns. We'll continue to iterate on our watermarking capabilities and tools in the coming months and we are starting with the following changes.

Here's a sample document with the old watermark styling


Here's the same sample document with the new watermark styling


Specifically, we've made the following changes with this iteration:

  • Reduced opacity of the watermark text
  • Updated alignment between the rows
  • Fewer repetition

Who these changes affect?
All Carta users who choose to apply watermark on their documents. These changes will be rolling out to all users today.

Exercise Simulator on Mobile!

In an aim to make exercising simple and easy to understand, we are excited to support simulation tools on iOS and Android apps.

This release will allow any option holder on iOS or Android app to view the estimated cost and taxes by simulating an exercise before performing it. 

There are three different scenarios available through the simulator depending on the type of the grant(s).

  • All Vested Options
  • Early Exercise all Options
  • Customize your exercise

While All Vested Options and Early Exercise All Options allow users to simulate a fixed number of options based on the selected date, Customize your Exercise allows users to manually enter the number of options they plan on exercising.

Once the preferred scenario is selected and additional tax information has been provided, the cost and taxes for that exercise are calculated.

83(b) elections for Profits Interest Units

What’s coming:

A simple way to manage 83(b) elections for Profits Interest Units

Who this affects:

  • LLCs
  • US-based equity holders who are issued Profits Interest Units

What’s new: 

  • 83(b) file management
    Equity holders and admins now have a dedicated place for 83(b) elections for Profits Interest Units. On the PIU modal, users will see an 83(b) elections tab where they can access the generated 83(b) election form and upload a signed copy for their issuing company and personal records.
  • 83(b) template for PIUs
    Carta generates a PDF template based on the information in the platform.
  • 83(b) reminders
    Timeliness is important for 83(b) elections. Equity holders will see various reminders in-app and by email highlighting 83(b) eligibility.

  • Filtering on 83(b) filing status
    For company administrators, it is easy to filter PIUs based on the 83(b) filing status.



Safe & Convertible Note Calculator

What’s coming: 

  • This scenario modeling tool helps founders predict the future impact of Safe and Note ownership when converted at a future priced round. 

Who this affects: 

  • Users: Equity administrators, Law firm partners
  • Packages: All packages (Launch, Starter, Growth, Scale, and IPO-Ready will receive this calculator)

What’s new: 

  • View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations.
  • Model multiple Notes or Safes and a priced round to account for all anticipated fundraising activity between now and the completion of a future priced round.
  • Assess the potential impact of different types of convertibles, including pre-money Safes vs. post-money Safes.

Timing: In September, all companies received access to this calculator.


Calculation Definitions For Reference:

Option Pool Increase
(Target Available Pool % *  Post-Money Fully Diluted Shares) - Available Options

Post-Money Valuation
Preferred Price Per Share * Post-Money Fully Diluted Shares

Preferred Price Per Share
Pre-Money Valuation / (Current Fully Diluted Shares + Option Pool Increase+ Converted Shares)

New Fully Diluted Shares
Current Fully Diluted Shares + New Money Preferred Shares + Option Pool Increase + Converted Shares

Conversion Price Per Share (Convertible Notes and Pre-Money Safe)
Lower of:

  • (1 - Conversion Discount) * Preferred Price Per Share
  • Valuation Cap / (Outstanding Shares + Outstanding Options +Available Options + Option Pool Increase)

 Conversion Price Per Share (Post-Money Safe)
Lower of:

  • (1 - Conversion Discount) * Preferred Price Per Share
  • Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Converted Shares)

Safe/Notes Ownership:

  • Convertible Note Converted Shares / New Fully Diluted Shares
  • Safe Converted Shares / New Fully Diluted Shares 

Safe/Note holders post-priced round

Converted Shares / New Fully Diluted Shares

New investors post-priced round

New Money Preferred Shares / New Fully Diluted Shares

Your post-priced round ownership

Founder Shares / New Fully Diluted Shares

Dilution of Founder Shares

(% change in Founder Ownership / Current Fully Diluted Shares) * 100

Value of your shares post-priced round

Founder Shares * Preferred Price Per Share

Improvements to our login screen

What’s coming: We've made a few changes to our login screen to help users get access to their Carta account. We want to make sure your first interaction with Carta is clear, simple, and secure.

Who this affects: 

What’s new:

  • Added a new link to help troubleshoot log in issues and contact support.
  • Updated the show password toggle to an icon to simplify the page layout. This is consistent with our designs also on our registration page.


New log in page

Previous log in page


Material event making your 409a stale?

What’s coming: Let your employees know your 409a is out of date and their taxes may be impacted if exercising.

Who this affects: 

  • Users: Equity administrators and option holders
  • Packages: Starter, Growth, Scale, and IPO-Ready will receive this functionality.  Any customer with 409a in their subscription.

What’s better: 

Proactive, in-app communication: When enabling this functionality, all option holders, upon exercising, are shown a disclaimer that the FMV is stale and this could impact their taxes. See the full disclaimer below in “Option Holder view”.

Equity Administrator view:

Option Holder view:

Timing: Rolling out to all 409a customers on September 30th.

Announcing (new and improved) Release Notes

Over the last few months, we’ve been listening to your feedback on our changelog and identified usability and customization as two areas for improvement. Today, we are announcing our new and improved Release Notes in order to provide you with up-to-date information and news on Carta product changes. 


Key features of our Release Notes include:

Filter by label

You can now filter out notes to only include the ones you care about most. You will be able to filter by Carta product area (Corporations, Investor Services, Platform, and CartaX), customer type (Employee, Equity Administrator, Board Member, etc. ), or release stage (General Audience, Preview, etc.)

You can filter by label on the right hand side of the screen by selecting the label you’d like to see notes on.




Subscribe for recurring product updates

Curious to know about all the great things we’re releasing on a regular basis? Subscribe to our Release Notes. You will get an email to your inbox whenever we post a new update. You can find the subscribe button at the top of the Release Notes page.



Voiding fully approved board consents

Legal admins can now mark a previously approved board consent as “Void”. Voided board consents will no longer be visible to the company’s admins or board members; however, for data integrity purposes, the data will be preserved in Carta’s audit logs.

Note that board consents approving 409A reports or new option grants cannot be voided, as those cap events are linked to the consent itself. If an admin requires assistance with a consent of this nature, they should work with Carta Support.

Board Mark Void.png

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