How does it work?
The new Form 3921 Dashboard is available now to all companies subscribed to this feature.
Reach out to Carta to get the process started
The new Form 3921 Dashboard is available now to all companies subscribed to this feature.
Valuation Updates: Easily mark up or down SAFEs or convertible notes!
What’s important or valuable about this change?
We've expanded the capabilities of our valuation update flows to enable clients, where appropriate, to mark up or down SAFEs or convertible notes. We created an addition to the flow which highlights audit and other considerations clients should have when marking up or down convertible assets, and given them the ability to complete this when applicable for their use case.
What do I need to do?
Check out a step by step guide on updating your valuations in-app here.
Here is a summary of how it works:
As a reminder, here is a walkthrough of in-app valuation updates:
Note: Convertible assets are not able to be selected for marking up or down. For common questions about types of valuation updates, see this FAQ in the Valuations 101 support article, highlighted below,
We revamped the entire limited partner (LP) experience of our closings product. Built with the feedback of the 20,000 LPs who have already closed on Carta, we’re excited to release Carta Closings, providing LPs the quickest and easiest way to subscribe to a Fund or SPV.
Carta Closings guides LPs through the subscription process and ensures that all LPs, from first-time investors to experienced institutions, have a smooth experience.
A Shorter & Smarter Questionnaire
A typical investor questionnaire contains dozens of questions, most of which are irrelevant to a majority of LPs. We reduced the time your LPs will spend on subscription documents by building a smarter workflow that adds or subtracts questions based on LPs responses to previous questions.
Investor questionnaires can contain legal and industry terms that are confusing to some LPs. Now, LPs will see a dynamic in-app sidebar that defines these terms and provides answers to frequently asked questions throughout the questionnaire.
Pre-Filled Investor Questionnaire
Once an LP fills out Carta’s Investor Questionnaire, their information is saved and will be auto-populated for all subsequent entities they subscribe to. This allows returning LPs to subscribe to new entities in seconds.
See how it works:
Who this affects
Carta Closings is an optional, free product available to all fund administration clients raising new funds or SPVs.
Plaid, SVB, FRB, & Brex Cash Balances are now available in app!
We are now pulling in daily cash balances for Direct Connect (SVB, FRB), Brex, and Plaid users!
All customers that have relationships with Plaid, SVB, FRB, and Brex.
Cash balances help our clients answer critical questions like “Do I have enough cash on hand to invest $1M into Solana today?”
They will also be used across our application to power health checks and workflows. In the near term, we’re working on automating invoice collection and creating treasury tickets. Using cash balance, we can get ahead of problems where the fund might be unaware they don’t have enough cash on hand to pay the expense.
Ready to check your cash balances in app? It is automatically updated in your General Ledger
Upon going public, issuers must communicate the share positions held on their former cap table to their new public Transfer Agent. Carta’s Mass Issuance report captures the key information that Transfer Agents need to reflect public share ownership following an IPO.
The Mass Issuance report aggregates pertinent cap table and tax-related (e.g, cost basis) information, typically found in multiple reports, into one export file containing information required by the Transfer Agent. Now issuers can easily export ownership information for communication to their Transfer Agent in one step.
The Mass Issuance report includes additional information on the company’s stock program shares to make it easier for the company to move the eligible portion of their stock ledger back to an equity management provider - such as Carta - from the Transfer Agent. This helps preserve critical tax information while facilitating the delivery of public shares to the stakeholder's Carta portfolio for trading.
Experience a secure and smooth data transition as you move your private equity records to a public Transfer Agent.
The Mass Issuance report:
Are you preparing to go public? Reach out to Carta’s public markets team (firstname.lastname@example.org) to begin planning your IPO journey.
The Mass Issuance report can be found under your Reports section in Carta.
Customers wishing to allow their shareholders to sell a portion of their holdings prior to a traditional 180-day lockup expiration can now control early lockup release programs through Carta. With Carta’s early lockup release functionality, your company can specify the quantity of shares each shareholder can sell during a specified period.
Carta’s Public Market Equity Management Services team will work with companies to determine:
After gathering this information, Carta will then work with the customer to complete an import template, which will be uploaded to Carta's public platform. Eligible shareholders will now be able to see the quantity of shares they can trade, what they’ve already traded, and what portion of shares is still remaining.
The early lockup release feature:
Figure 1: Shareholders can monitor the number of shares they can sell during the early lockup release.
Figure 2: Shareholders are limited to the quantity of shares that they are allowed to sell per the rules of the early lockup release. Quantities can be set specific to an individual.
Trade limits apply across asset types. The sale of long stock, in addition to cashless option transactions, will count against the shareholder’s total allowed quantity to trade, ensuring that the stakeholder won’t oversell per the terms of the early lockup release.
Reach out to Carta’s Public Markets team (email@example.com) to begin customizing an early lockup release benefit for your employees ahead of an exit.
General partners now have the ability to view and track capital calls from the Carta Android app. Investment firms can now track the progress of on-going and completed calls along with investor details, on the go, straight from the Carta mobile app.
Fund Administration clients can now access their capital call details and investor information from the Carta Android app.
Carta users will now be able to perform a Cashless Hold Exercise and Cashless Sell Exercise on the mobile app.
Users with holdings in public companies on Carta will now be able to exercise and sell their shares via a Cashless Hold or Cashless Sell transaction while on-the-go through the Carta mobile app. These features were previously available to users via desktop, and this launch closes the previously existing gap in functionality between the Carta web experience and the Carta mobile app.
Carta mobile app users will now be able to login using a web-browser on iOS and Android. Web-login gives us the benefits of browser-based authentication, and better security, without disrupting the user experience.
Employees and Investors
iOS & Android
In an effort to bring login and authentication together across all Carta platforms, we are launching browser-based login on mobile. The web-login experience will use Safari on iOS and a default browser on Android.
Carta fund admin users can instantly be notified about share price updates for portfolio companies with their cap tables on Carta. As Carta companies publish new share classes or file updated Articles of Incorporation (AOI), funds with basic or higher cap table access may receive notifications about these updates. In addition, users will have the option to apply these updates to their Schedule of Investments (SOI) immediately.
When a Carta company raises a new round and publishes it on their cap table, firms with appropriate access can be notified, and Carta will automatically mark their share value to the latest price on the AOI.
How it Works
When a company has their cap table on Carta and raises funding through an equity round, they update their Articles of Incorporation, create Stock Purchase Agreements, and update their cap table data to reflect the new breakdown of ownership and share price.
The Fund Administration team reviews these updates when a new share class is authorized, or a new incorporation document is filed on Carta. Fund admin users who a Carta company has granted basic, advanced, or detailed access to the cap table will be notified of updates through email. The email will contain a link to information such as share class, share price, and impact on fund metrics.
Who This Affects
Firms who have requested and been granted basic, advanced or full detail level access to the cap tables and financing history for their Carta portfolio companies will be notified of new filings.
Why This is Awesome
Carta serves a powerful network of equity and ownership data, which provides a single source of truth for companies and VC firms. This enables accurate data to be leveraged in multiple places, reducing discrepancies, confusion, and manual updates of investment valuations.