With Carta Distributions, you can:
Why it matters:
Our customers have spoken, and we've listened. Distributions are a critical aspect of their financial operations, signaling value generation for stakeholders. However, the previous tool fell short of expectations. With Carta Distributions 2.0, we're addressing these pain points head-on, enhancing user experience and satisfaction with the tool.
What’s included?
The release focuses on revamping the user experience of the Distributions tool, with support for both pro-rata and custom distribution methods. We're committed to providing a seamless and intuitive interface, making it easier than ever for our users to manage distributions.
What do I need to do?
If you’re interested in trying out the new Carta Distributions, you can reach out to your account manager or schedule a demo here.
What's next?
In the coming weeks, we'll be rolling out additional features and enhancements. Users can expect to see improvements that allow them to visualize the impact of distributions on invested capital balances across the platform. Plus, we'll be introducing email notifications to keep users informed every step of the way.
]]>We are introducing a new page available to Launch customers - Carta Insights. This page will provide both education and data that we believe will be helpful to Founders as you build your company.
The information we’re including today is built around compensation. Carta Insights will provide you with:
If you have any questions about this new report, please reach out to launchsupport@carta.com.
]]>You and our shareholders can now see exactly which securities are eligible for the QSBS tax benefit on Carta. Companies who purchase a QSBS Attestation letter with Carta, can share a personalized version of their QSBS attestation letter with their individual shareholders.
Give your shareholders access to a personalized QSBS statement in their portfolio with one click. Log into Carta.com --> navigate to the QSBS Tax Break page --> click on 'Share QSBS Attestation'.
By selecting ‘Share QSBS attestation’, all individual shareholders will receive an email notifying them that they have a QSBS statement available for download in their portfolio. They will be able to see the statement in their portfolio on Carta.
Sample email that will be sent to individual (or direct) shareholders
When viewing your portfolio on Carta, you will see a banner on top of any company that you hold QSBS eligible securities. If your company has shared the QSBS attestation with you, you will be able to download the statement directly from the main portfolio page.
If you hold securities that may be QSBS eligible - you will also see two new sections on your holdings page:
QSBS Tax Benefit tile that will show you
Table of QSBS eligible securities that shows:
In addition to the new sections in the holdings page, your certificates on Carta will have a new section for QSBS status and the QSBS Attestation.
The QSBS statement will show you a personalized snapshot of the QSBS eligible securities you hold as of the download date. The PDF can be used to share with your tax or legal advisors when going through the sale of your shares or discussing your personal situation. The QSBS statement will only be available to individual holders in this release, and not investment firms.
Disclaimer:
eShares, Inc. DBA Carta, Inc. does not provide tax, accounting, or legal advice. You are advised to consult with your tax, accounting, or legal advisors regarding any financial, tax or legal implications of exercising your options or selling any shares.
If you or your company would like to learn more about how Carta can help you take advantage of the QSBS tax break, or check out our announcement: https://carta.com/blog/introducing-qsbs-attestation/
]]>Carta has revamped the Equity Plan report – consolidating key information from different reports, and adding brand new, highly requested functionality. This update provides a comprehensive overview of your equity landscape via summary figures, the ability to tie the change in values over a period via baked-in formulas, and granular security-level details.
Base version:
Optional add-ons when exporting:
You can download the new Equity Plan report from your Carta company account by navigating to Essentials > Run reports > Equity plan, or by going to Cap Table > Run reports > Equity plan.
For more information on Carta's new Equity Plan Report, please refer to our dedicated support article. Additionally, you can find details on exporting reports in general on our support site.
]]>We are introducing a new interactive report – the Compensation Summary report. Users can now see a complete view of employee salary and equity spend by by Job Area, Track, or Location and evaluate headcount costs to market targets for these groups.
With the Compensation Summary report, you can view employee salary and equity spend grouped by Job Area, Track, or Location in a table view. Any datapoint that is +/- 10% of the market benchmark will display in red. The Compensation Summary report provides several summary insights including:
Summary insights take into account only employees with complete information and eligible benchmark targets. Users can export their Compensation Summary report to share and use in reporting.
If you have any questions about this new report, please reach out to your Customer Success Manager.
]]>An IPO demands meticulous preparation to ensure a company’s governance, finances, and internal protocols comply with the high regulatory standards for selling shares to the public. The journey to listing day often takes months or years, with the most arduous and time consuming part of the process being the financial and cap table audit.
Recognizing the critical need for thorough preparation, Carta now offers a comprehensive bundle of IPO readiness reports. This streamlines the preparation required for the audit and S-1 drafting by consolidating applicable reports in one location and allowing a one-click bulk download.
The IPO Reports Bundle packages three different sets of IPO relevant reports: Equity Reports (security and stakeholder specific information), Valuation Reports (all 409A valuations during the company's lifecycle with Carta) and Financial Reports (stock-based compensation expense and minimum disclosure reports).
You can find the IPO reports bundle from your Carta company account by navigating to Essentials > Run Reports, or by going to Cap Table > Run reports.
For more information on Carta's IPO reports bundle, please refer to our dedicated support article. Additionally, you can find details on exporting reports in general on our support site.
If you have questions about other ways Carta helps our customers prepare for an IPO, please refer to our IPO Readiness Guide and Checklist.
We have updated salary, total cash compensation, and equity benchmarks for all job areas and specializations.
Benchmark Trends
Since our last quarterly refresh, we’ve seen an increase in the number of companies and employee records in our data set, with the largest influx among higher valuation companies. As a result, some benchmarks saw slightly larger changes compared to previous releases.
In aggregate, salary and total cash compensation benchmarks are flat to slightly higher than our last release. Salaries increased more for higher valuation companies. 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 flat in aggregate, showing a slight downward trend from last quarter’s 1% increase. Looking at equity trends by valuation, equity benchmarks are flat overall for most peer groups but have declined by about 3% for companies with valuations greater than $1 billion.
Salary - Salary benchmarks for most job areas and specializations are within 2% of last quarter’s data. The Administrative job area has increased by 4%, while CEO salary benchmarks have decreased by 4%.
Equity - Human Resources equity benchmarks have increased 7% overall following a 3% decrease in last quarter’s benchmarks. Three specializations saw the largest decrease in equity benchmarks (5-6%): Web Engineer, AI/ML Engineer, and Account Executive. All other roles saw increases/decreases within 3-4% of last quarter.
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.
If you have any questions about these new benchmarks, please reach out to your Customer Success Manager.
]]>Carta Launch companies can now complete their Corporate Transparency Act report directly in Carta.
What is the Corporate Transparency Act?
The Corporate Transparency Act is a new Law that came into effect on 1/1/2024 that requires companies to report their company and ownership information to the Financial Crimes and Enforcement Network (FinCEN). Many companies registered or doing business in the US are required to comply within 90 days of incorporation and provide continuous updates whenever the company or ownership information changes.
Why is it valuable?
Non compliance with the Corporate Transparency Act has both civil and criminal penalties for companies and their owners. Carta helps simplify the filing process using your data that’s already on Carta.
Who is this product available to?
This is currently only available for companies that are incorporated on or after January 1, 2024 and are using Carta’s free Launch product but it will be made available to all companies in mid 2024.
How does it work?
Where can I learn more?
Additional information about CTA and how Carta can help you comply can be found here
]]>Carta’s Tender Offer Transaction Model report makes it easy to get ready for a tender offer transaction. By directly integrating with your cap table, this report allows you to model stakeholder and security eligibility ahead of a secondary transaction.
How does it work?
The Tender Offer Transaction Model allows companies to create personalized tender offer scenarios based on:
The ability to configure these inputs will help answer important size and eligibility considerations as you contemplate and prepare for a transaction.
The report will show you summary statistics of participant counts, maximum share amounts, and maximum dollars by participant group.
Who is this available for?
All Carta Cap Table customers.
How do I access it?
You’ll receive a notification once the download is complete, and will receive an Excel spreadsheet with live calculations.
If you’re interested in learning more about liquidity, please reach out to company_coverage@cartacapitalmarkets.com or your account manager.
]]>Option holders can now see the value of their vested, unexercised options using market prices based on our proprietary Reference Price Range. With just a quick look, option holders can also see potential gains from the exercise and sale of options in their portfolio on Carta.
Interested in realizing the gains in exercising and selling your options? Click on the Sell button to start the process of exercising and selling your shares.
What metrics are available and how are they calculated?
Options are displayed alongside any other equity shareholders have in their portfolio for a given company. See our previous release note for the full list of portfolio metrics.
How does it work?
You can view and identify to a Carta representative how many shares underlying your options you’d like to sell on Carta:
Who is this available to?
This is only available to Carta Liquidity customers. At this time, only Accredited Investors who qualify as Institutional Accounts can purchase securities and only Accredited Investors can sell securities via Carta Liquidity.
If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
The mark displayed by Carta does not represent an executable price or bid/ask spread and does not reflect any market premium/discounts. The fair market value or executable price, if any, for any security may be higher or lower than the provided price. Many unregistered equity securities are subject to transfer restrictions that may limit transfers at any price.
The mark, Reference Price, and Reference Price Range are not investment advice or a recommendation to transact at any price and should not be your primary basis for determining the value of any security.
]]>Companies that subscribe to the QSBS service will see a new QSBS Tax Break page in their Carta account. The page shows your company's current QSBS status and attestation letter. You can also book time with a Carta QSBS expert on the page directly, and view historical QSBS letters.
What do I need to do?
This page is available to users with Full Access or Company Edit access. Users can navigate to the page for their Company by scrolling to the bottom of the menu and selecting `QSBS Tax Break`.
If you have any questions reach out to your assigned Carta account team or tax@carta.com to learn more!
]]>Eligible early stage companies will now automatically receive a new draft 409A report the day after their previous one expires.
What’s important about this change?
By automatically sending you a draft of your 409A, we’re removing the need for customers to manually request a new 409A. You will have the opportunity to review and request changes before the new valuation takes effect.
How does it work?
Carta will draft your report using your Carta cap table information and broader market data of similar companies within the same industry, stage, and size. This allows us to provide an accurate and defensible fair market value (FMV) for use when issuing or exercising options.
On the day following expiration and if you have not already submitted a request for an updated valuation, Carta will prepare a valuation and send you a notification once the 409A draft is ready for review. You will also see a new task appear in your company dashboard.
What do I need to do?
All you need to do is review and accept the new FMV. The new FMV will be applied to your account after acceptance.
It is important to note that we assume the following when performing our analysis:
If any of these assumptions are incorrect, or if you have questions about your report, contact the Carta Valuation team at 409a@carta.com before accepting your new 409A so we can make adjustments to your concluded FMV.
Who is it available for?
Corporations that have 409A in their subscription and meet the following requirements:
In addition, our valuation analysts will conduct individual reviews before sending a draft.
How do I learn more or get help?
Contact the Carta Valuation Team at 409a@carta.com, or from the 409A ledger in your Carta account.
Customers can learn more about Flash 409A here.
]]>Shareholders can now see the value of their holdings using marks based on our proprietary Reference Price Range. With just a quick look, shareholders can view their unrealized gains, multiple of invested capital, and the rate of return of their portfolio holdings on Carta.
Interested in locking in unrealized gains or closing out a position shown in the red? Click on the Sell button to start the process of selling your shares.
What metrics are available and how are they calculated?
Mark * Shares
Value of shares - (Basis * Shares)
Value of shares / (Basis * Shares)
How does it work?
You can view and identify to a Carta representative which holdings you’d like to sell on Carta:
Who is this available to?
This is only available to Carta Liquidity customers. At this time, only Accredited Investors who qualify as Institutional Accounts can purchase securities and only Accredited Investors can sell securities via Carta Liquidity.
If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
The mark displayed by Carta does not represent an executable price or bid/ask spread and does not reflect any market premium/discounts. The fair market value or executable price, if any, for any security may be higher or lower than the provided price. Many unregistered equity securities are subject to transfer restrictions that may limit transfers at any price.
The mark, Reference Price, and Reference Price Range are not investment advice or a recommendation to transact at any price and should not be your primary basis for determining the value of any security.
]]>Carta Liquidity now highlights recently updated key information to help investors stay informed about market changes.
In Carta’s Secondary Marketplace, you can now view and sort by recently updated bids, asks, our proprietary Reference Price Range, and funding rounds.
How does it work?
You can view the latest updates to the marketplace:
Who is this available to?
This is only available to Carta Liquidity customers. At this time, only Accredited Investors who qualify as Institutional Accounts can purchase securities and only Accredited Investors can sell securities via Carta Liquidity.
If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
]]>This new release gives investors the choice to fund SAFEs online via ACH. By choosing this option investors can quickly fund SAFEs in one-click.
Why is it valuable?
Direct online funding is the preferred choice for most investors due to improved security, reduced manual entry errors, and hassle-free transfers. But prior to this release, the choice of the method of funding was exclusively made by the company.
How does it work?
After signing the SAFE, an investor will be provided with two choices:
Once the funds are received, the SAFE is issued.
Carta has revamped the Exercised and Settled report. The report, used to reconcile exercises, settlements and sales recorded in Carta, now runs from our new reporting engine and comes with improvements and new fields:
Who is this available for, and how do I access it?
This is available for company admins with Full Access, Company Editor and View-Only permissions, and can be accessed by going to your company account, navigating to Cap Table > Run reports, and selecting the Exercised and Settled report.
]]>Set a commitment range in Carta Closings, before inviting your LPs to close. You can set one range for all LPs closing into your fund or custom ranges for each individual LP.
LPs will be asked to enter a final commitment amount from the range given before they begin the closings process. This will give your LPs the opportunity to decide how much they want to commit when closing into your fund.
Once the LP enters this amount, you will receive a notification with the final committed capital amount.
How do I learn more?Reach out to your Account Director to learn more about Carta Closings today.
]]>What's new?
Submit reimbursements directly on Carta. Now, you can skip the back-and-forth over email and upload all the required information to set up a wire in two simple steps.
What’s valuable about this change?
Vendor payments and reimbursements are supported on Carta. From the moment you initiate a reimbursement to when your wire is set up, you can track its progress from anywhere, at any time. Plus, you can maintain your operational cadence and submit invoices to Carta in bulk.
What do I need to do?
How do I learn more or get help?
Get in touch with your Account Manager or talk to one of our representatives today.
Carta has revamped the dashboard page for administrators on their cap table. The dashboard now acts as a central hub that consolidates tasks and recommendations across the cap table to help admins understand what needs their attention at the right times.
Company admins with Full Access or Company Editor permissions can see the dashboard page in their company’s cap table view.
Log into your Carta account and navigate to your company. The dashboard is the first page you arrive at and can also be accessed through the left-side navigation panel.
The ‘Your Tasks’ section outlines all to-do items that you can perform for this company.
Tasks found here may also be found on the main Tasks page, but also include additional action items that must be completed to ensure your company’s cap table is compliant, accurate, and up to date.
For certain tasks, upon click you’ll be navigated to a dashboard sub-page to complete the action. Example below:
If there are no outstanding tasks, we’ll let you know that you’re all caught up. New tasks will appear over time as needed.
Recommendations are helpful cards that appear below ‘Your Tasks’ in the dashboard.
Recommendations highlight information that helps you stay up to date with time-sensitive tax savings, Carta tools that can speed up and simplify cap table management, and insights into employee vesting schedules to help retain talent.
]]>Carta Liquidity now displays the implied valuation for all price-per-share values in our Secondary Marketplace.
The most frequently asked question from investors is: "What does that price per share represent in terms of valuation?" Our Secondary Marketplace now provides the implied valuation on live orders, and for our proprietary Reference Price Range. Additionally, users can see a live calculation of the implied valuation when entering an indication of interest.
How does it work?
You can view implied valuations for price-per-share values on Carta:
You can submit indications to buy or sell shares on Carta:
Who is this available to?
This is only available to Carta Liquidity customers. At this time, only Accredited Investors who qualify as Institutional Accounts can purchase securities and only Accredited Investors can sell securities via Carta Liquidity.
If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
]]>You can now use benchmarks that are adjusted to reflect US national average pay levels. This new feature allows you to use an accurate, standard, and uniform approach when setting a compensation framework for your company. You can view and use the US national average by:
US national average benchmarks are available to review on the Benchmarks page by following these steps:
1. Navigate to the “Benchmarks” page
2. In the Location selection drop-down, users can select “All US locations (national average)”
If your location-based compensation strategy targets compensation for all employees at the US national average, you can follow these steps to build that into your Compensation Plan
If you have any questions about US national average geo-adjustments, please reach out to your Customer Success Manager.
]]>Our benchmarks now support one new job area and two new specializations:
Note: The sample size for new benchmarks are generally smaller than existing benchmarks, which could result in data volatility as we continue to update the data and grow our overall sample size.
You can view benchmarks for the new roles by:
Visiting the Benchmarks page and selecting “Manufacturing, “Human Resources, or “Marketing” under Area. Within “Human Resources” and “Marketing”, you can select any of the new specializations by selecting the Specialization dropdown.
This will allow you to view compensation benchmarks for levels 1 - 8 for these new roles
The above process can be followed for each of the new benchmarks.
The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the new benchmarks will now be calculated using the target compensation for the new benchmarks.
You can 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.
If you have any questions about the new data, please reach out to your Customer Success Manager.
]]>Fund managers can now submit reimbursements on Carta Carry.
What’s important about this change?
Gone are the days of holding on to crumpled receipts or combing through credit card statements at quarter’s end to submit for reimbursement.
Now, we’ve streamlined expense management right from your phone. Easily submit a reimbursement in real-time by snapping a picture of the receipt and uploading it in one place.
How does it work?
Tap Submit Reimbursement, then select Add Receipt. You can select to take a picture, choose a photo from your photo library, or upload a file.
Then select the paying entity and where the reimbursement should go. Add any additional information your fund administrator should know when processing this expense, then tap Submit Request.
Don’t have Carta Carry?
Download it on iOS or Android today.
ASC 718 Financial Reporting now supports expensing profits interest units with vesting schedules that have non-market performance conditions. Additionally, all historically generated reports are now saved in a report ledger.
See this release note for more information on how to pull ASC 718 expense and disclosure reports from Carta.
If you need help with your Carta-generated financial reports, contact our dedicated ASC 718 support team.
If you’re interested in automating ASC 718 financial reporting with Carta, please reach out to your CSM or request a demo from the Financial reporting tab inside Carta. ASC 718 financial reporting is available as an add-on to your current Carta subscription.
]]>Access to your Carta account can now be managed via SSO.
You can now link your identity management provider to Carta to ensure access to Carta meets your company’s authentication security standards. Add, remove, and audit access to Carta in your identity management platform.
Talk to your CSM to add and enable Single Sign-On on your Carta account. Once you’ve added Carta to your identity management provider, you’ll be able to see who has access to Carta from the Team and security page and will need to use your identity management provider to add or remove users.
For more information on Single Sign-On, please visit our support site.
]]>You can now see additional data in cap table reports, including the interest issue date and the documents that were shared with the interest holder.
When reporting on interests issued to holders, you can gain more insights with key information including the issue dates in cap table views and document names in the interest export, allowing you to increase auditability and ensure the correct documents have been shared with holders.
For more information on cap table reports, please visit our support site.
]]>Carta Total Compensation customers will have access to a complete view of employee details with their salary information, equity information, and market targets now also visible in the Cap Table Stakeholder modal.
1. Users can navigate to ‘Manage Stakeholders’ under Essentials on the left-hand navigation menu.
2. Stakeholders who are employees will have a new menu item “View employee Compensation” under the three-dot menu
3. This will open the “Compensation” tab for the employee, which will display:
a. A summary of salary and equity compensation
b. Market targets for the individual as set by the Compensation Plan in Carta Total Compensation
If you have any questions, please reach out to your Customer Success Manager.
]]>Introducing a SAFE Insights tool that provides fundraise benchmarks customizable by industry, stage, and location.
Why is it valuable?
One of the first steps of any fundraise is understanding what terms to raise on. This tool helps early-stage companies contextualize the terms they are considering against other comparable companies. The tool leverages a dataset of 38,000 startups and 2 million security holders managing $2.7 trillion in equity to enable founders to negotiate and get funding based on reliable and current data benchmarks.
How does it work?
Companies indicate the terms of their SAFE round including stage, industry, and financing amount raised. Based on their input, the tool will show how their specific SAFE terms compare against the latest benchmarks on:
Getting started:
How does it work?
Set a commitment range during your SPV setup process, before inviting your LPs to close. This will give your LPs the opportunity to decide how much they want to commit when closing into your SPV.
Once the LP closes, you will receive a notification with the final committed capital amount.
GPs can now update the primary contact information for an LP.
What’s important about this change?
Previously, if you wanted to update an LPs primary contact, you would have to work with Carta to make this change.
Now, you can update primary contacts, whenever you need to. Plus, you can keep track of all changes made in your LP contact audit log.
How does it work?
Select the entity, then navigate to the Partners tab. Find the primary contact you would like to update, then click on the pencil symbol.
First, select whether the current primary contact should be deleted or downgraded to a secondary contact.You can either upgrade an existing secondary contact or add a new contact. If you do not have an existing secondary contact for this LP, you will only see the option to add a new primary contact.
Note: If you only have to update your primary contact’s email address, you will still need to first delete them as primary contact, then re-add them with their new email address.
If this contact is associated with multiple investments, you can apply this contact change across all of their commitments.
Click Confirm change. Your new primary contact will now receive an email inviting them to Carta.
To view an audit of all changes made to your primary contact’s information, find the contact you would like to audit, then click on the last updated date.
Soon your LPs will have visibility into who the primary contact is for their commitments and be able to update this information, whenever they need to.
How do I learn more or get help?
To learn more about primary contacts and how to update your primary contact information, check out this support article or reach out to your Account Director for a demo.
Carta Total Compensation users can now use the New Hire Equity Forecast calculator to proactively allocate equity for anticipated headcount in the upcoming months.
You can access the New Hire Equity Forecast calculator, along with any other Carta Total Comp report, from either:
See a quick video on accessing compensation reports here.
If you have any questions about the new report, please reach out to your Customer Success Manager.
]]>Fund managers can now review and approve management fees on Carta Carry.
What’s important about this change?
Now, whether you're at your desk or on the go, you can conveniently and proactively approve your management fees directly on Carta.
How does it work?
You’ll receive a push notification when your management fees are ready for review. Tap into the task to review the management fee calculations.
If you want to make changes to your management fees, tap Request changes, enter the request, and our fund admin team will make the update.
To approve, click Approve fees. You can then select to transfer the entirety of the management fee, a specific amount, or schedule the management fee to transfer at a later date.
Don't have the app?
Download it on iOS or Android today.
Customers with an HR Integration can automatically keep stakeholder information up to date! With automatic stakeholder updates, HRIS data for employee addresses, tax IDs, job titles and cost centers can automatically apply in Carta! The Manage Stakeholders page now includes the status and the ability to toggle the feature on and off from a setting modal. Additionally, admins can review these automatic updates via a report.
When setting up a new integration, Carta will automatically enable this functionality to ensure your cap table information is up to date and accurate. For customers with an existing integration, there is no change to the existing experience, but they can opt in from the Manage Stakeholders page.
This feature requires an HRIS integration, which can be configured under Company Settings. For more details on available integration partners, see our HRIS Integrations: Overview.
Customers can learn more about automatic updates here.
]]>Companies can now add Carta Tax Advisory to their Slack. The new Slack app, allows employees to book 1-1 sessions, visit our video education center, and see their post-session recap from their personal Carta Equity Tax Advisory.
Employees also can view upcoming sessions, join their 1-1 directly, and receive reminders for upcoming sessions.
Company admins can log in to their Carta account and view the installation link on the Equity Tax Advisory page.
After navigating to the Equity Tax Advisory dashboard, select the "Install" button on the task list:
From there you will be directed to the Slack installation page, make sure you select the proper Slack network.
If you have any questions reach out to your assigned Carta account team or tax@carta.com to learn more!
GPs on Carta now have full visibility into the progress of their quarterly financial reports – 15 days before quarter-end.
What’s valuable about this change?
Previously, the process to complete your financials was opaque. A series of emails and phone calls were required to project manage your reporting. Now, conveniently located in your Activity tab, you can see a complete checklist of the tasks required to prepare your financial statements.
Starting today, you can take action and share information with us directly in Carta. We’ll mark those tasks as complete in real-time. Plus you get a look into everything the fund admin team is working on.
What’s next?
On October 2, you'll receive an email with your draft Q3 financial report(s). If your open tasks are resolved between now and then, your financials will be ready to review, approve, and send to your LPs just one business day after the quarter ends.
What do I need to do?
Didn’t receive an email or are some of your entities missing from the Financial Report Progress Tracker? Learn more about why.
How do I learn more or get help?
Get in touch with your Account Director or talk to one of our representatives today.
]]>We have three new updates included as a part of this benchmark version:
We have updated salary, total cash compensation, and equity benchmarks for all job areas and specializations.
Market Trends
Salary and total cash compensation benchmarks are generally flat since our last update. These trends are fairly consistent across company valuation and level. As in previous updates, specialization level data continues to be more volatile than the broader sample, as sample sizes for these roles are smaller than job area-level data.
Equity benchmarks have decreased approximately 1%, less than last quarter’s 9%. Equity benchmarks have been decreasing steadily since the beginning of the year, and it’s possible that the market is starting to stabilize close to a “new normal”. We did observe larger decreases, however, among later stage companies indicating that these companies (similar to public companies earlier in 2023) are focused on managing dilution in the face of falling valuations
Salary - Project Management roles saw the largest increase this quarter (+5%), balancing out the larger decrease that this job area saw last quarter. Notably our AI/ML engineering benchmarks increased by approximately 3%. IT and Legal salary benchmarks decreased by 3% versus last quarter. All other job areas saw salary changes that were within 2% of last quarter’s benchmarks.
Equity - Human Resources and Finance roles saw the largest decreases. Some job areas and specializations did see overall increases to equity benchmarks this quarter, such as Sales Development, Sales/Solutions Engineering, and Art and Graphic Design. Most other job areas changed by 3% or less versus last quarter though there can be variance by level and valuation peer group.
We have released initial benchmarks for three new specializations specific to the Life Sciences industry:
Benchmarks for these roles were developed based on employee data taken exclusively from the Life Sciences companies in our database, making these benchmarks our first industry specific benchmarks. These benchmarks are reflective of the geographic distribution of Life Sciences talent, with markets like Boston, San Diego, Seattle, and Los Angeles joining San Francisco and New York as the top labor markets for these roles.
Finally, in an effort to increase the overall quality of our benchmarks, we will no longer provide data for the Below $1M valuation peer group. Variability of pay within that group tended to be high, and many of our benchmarks were less relevant for companies at such an early stage. Any customers with Plans set to use the Below $1M will automatically default to the $1M - $10M peer group after updating to the latest 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.
You can view benchmarks for the new specializations by:
1. Visiting the Benchmarks page and selecting “Research” under Area. Once the job area is selected, you can select “Life Sciences” from the Industry dropdown and any of the new specializations by selecting the Specialization dropdown.
2. This will allow you to view salary/equity benchmarks for levels 1-3 for Research Associate, levels 4-6 for Scientist, and levels 1-5 for Lab Operations
If you have any questions about these new benchmarks or if you have suggestions for additional Life Sciences specific data, please reach out to your Customer Success Manager.
]]>Carta now has an exportable Open Cap Table report.
OCX, also known as the Open Cap Table Excel Standard, is an initiative led by the Open Cap Table Coalition to establish standardized practices for equity data.
OCX serves as a cap table report, similar to Carta's existing cap table feature. However, it represents our commitment to a more standardized approach to equity practices.
To access OCX, navigate to Cap Table > Run reports. You will find the OCX report in the equity report list as well as under the Capitalization folder.
OCX aims to standardize an ecosystem where various stakeholders operate differently in terms of their practices and data presentation. By adopting a more uniform approach, it enables seamless interaction with equity data and smoother movement across different processes and platforms.
Soon, we will have a dedicated support article for the OCX report, and you can read about our existing reports on our support site. You can also find additional information about OCX in Announcing the Open Cap Table Excel Standard (OCX).
Carta is adding support for custom SAFEs and side letters. Companies now have the flexibility to use customized SAFEs and side letters for their financing round. This release expands the types of documents that can be used to issue, transact and manage through Carta.
Why is it valuable?
Companies and investors may agree on a different set of terms that are not supported by a YC or SAFE template, and require a SAFE and side letter that reflects these terms. With this feature, customers can have their custom SAFE agreements signed and funded on Carta, benefiting from Carta’s streamlined investor and stakeholder signing, status tracking, faster funding, and automatic cap table updates.
How does it work?
Users can upload a custom, pre-filled SAFE document and side letter to be signed and funded through Cata.
For acceptance, custom SAFE templates require all of the following:
Getting started:
How do I learn more or get help?
To learn more about SAFE Financings, check out this support article or reach out to your Account Manager for a demo. You can also learn how you can securely, quickly, and conveniently transfer funds directly within Carta.
]]>You can now use the Equity Forecasting and Burn Calculator to automatically calculate the impact on your option pool from three different types of equity grants:
With these grants incorporated into your calculations, you can more accurately model your equity pool’s burn over the coming year to make informed decisions around strategies for your compensation program.
You can access the Equity Forecasting and Burn Calculator, along with any other Carta Total Comp reports, from either:
If you want to have access or want to schedule a demo to understand what you can unlock with the calculator and Carta Total Comp, reach out to your CSM.
We are planning a few additional enhancements to improve ease of use of the Equity Forecasting and Burn Calculator:
This calculator is also a living and growing tool – and so any feedback you have will be appreciated. You can either provide it via reports-feedback@carta.com, through your CSM, or directly within Carta Total Compensation after downloading the calculator. Your feedback will help us improve this and other reports to fit your needs.
]]>Today, we’re releasing the Communication Center to all Carta customers, which gives you the ability to easily provide updates to your stakeholders from a central location using advanced messaging functionality.
How does it work?
You can now use the Communication Center to:
How do I access the Communication Center?
Ready to send a company update? Log-in to your Carta account and head to the Communications tab on the left-hand navigation. See how it works.
]]>A 701 Disclosure is a notice you may need to send to employees and investors if your company wants to sell or issue more than $10 million in securities within a 12-month period. This includes employees and other service providers who will be receiving equity in your company. They must be given the chance to review the disclosures before the purchase decision (or acceptance of an equity award) is made. You can read more about Rule 701 and how it applies to your company here.
Companies can use Carta’s compliance features to check if they are required to send 701 Disclosures before issuing securities. Go to Essentials > Run reports to find the 701 report to check whether you meet this requirement.
Companies in Scale. If you would like to upgrade your subscription to include Rule 701 Compliance, talk to your Account Manager or schedule a demo.
Next, you will be prompted to either run a 701 report or begin preparing the 701 Disclosure without running a report. Running a 701 report will let you know if you are required to send 701 disclosures before issuing these RSUs.
After clicking Prepare 701 disclosure, you will be taken to the Communication Center, where you can prepare a message and attach a disclosure PDF. Click Next: Choose recipients or Click Save Draft to save this draft for another time.
Once a 701 Disclosure has been sent, recipients will receive the following email. This communication will be sent to the stakeholder’s Contact Email on file.
All disclosures will be watermarked individually. These documents will be shared with recipients directly in Carta, not over email. Your recipients will be blocked from downloading the document, and any admins on your account will see who opened the disclosure and when. Admins will also have access to analytics to see which pages of the disclosure each recipient spent the most time on.
You cannot resend a 701 Disclosure in the app. If you need to resend a 701 Disclosure for any reason, contact Carta’s support team for assistance.
]]>On your Activity tab, click into any task to view the expected by date.
View the Action Needed By date to see when you need to complete your portion of the task to meet the expected by date.
How do I learn more?
To learn more about expected completion dates, reach out to your Relationship Manager today.
We’ve released a new bespoke waterfall modeling engine that is encoded with your distribution rules and connected to your most up-to-date cap table in Carta.
The new waterfall modeling engine allows you to build and run any waterfall model in minutes.
Waterfall modeling is available as an add-on to your current Carta subscription. Please reach out to your CSM to learn more and request a demo.
This solution requires a custom implementation to encode the distribution rules from your operating agreement into Carta’s modeling engine. Your CSM will walk you through what is needed from you to get started.
If you currently have the new waterfall modeling solution enabled and implemented on your Carta account:
Once you run the waterfall, you can view a complete breakdown of proceeds based on your inputs and distribution rules. You can run as many waterfall models as you want by customizing the valuation date, total equity value, and vesting treatment. For each waterfall analysis, you can:
If you’re interested in Waterfall modeling, please reach out to your CSM to get started. For support with waterfall modeling, visit our support site.
]]>Interest holders with multiple Carta portfolios can now choose the portfolio they want to accept their interests into.
Interest holders with more than one Carta portfolio, such as a family trust or a portfolio they share with their spouse, have the flexibility to accept their interests into the portfolio of their choice.
As an interest holder, when you’ve received a new interest, you can either choose an existing Carta portfolio you want to accept your interest into or create a new one.
For more information, please visit our support site.
]]>We’ve released some usability improvements to Documents that provide Admins more flexibility to make updates to Data Rooms and Templates.
When managing documents, Admins now have the flexibility to:
For more information, please visit our support site.
]]>Carta Liquidity is now providing our proprietary Reference Price Range for companies in our Secondary Marketplace.
The Reference Price Range is based on information derived from available aggregated, composite, and/or historical transaction pricing information and updated on a weekly basis as necessary. The Reference Price Range may also incorporate recent bids and offers in a specified security from various market sources.
How does it work?
Log into your Carta account, enter the Liquidity platform, and navigate to the “Marketplace” tab. From there, investors can browse opportunities to buy and sell with Reference Price Ranges.
You can see the Reference Price Range for a company:
Who is this available to?
This is only available to Carta Liquidity customers. If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
The Reference Price Range does not represent an executable price or bid/ask spread and does not reflect any market premium/discounts. The fair market value or executable price, if any, for any security may be higher or lower than the provided range. Many unregistered equity securities are subject to transfer restrictions that may limit transfers at any price.
The Reference Price Range is not investment advice or a recommendation to transact at any price and should not be your primary basis for determining the value of any security.
Fund managers can now view an audit of all changes made to LP contacts.
What’s important about this change?
You now have full visibility into any changes made to your LPs contact information, including:
Plus, you can now easily see if a contact is associated with additional LPs in your firm or switch between fund commitments to view a contact audit across investments.
How does it work?
Select the entity, navigate to the Partners tab, then select Contacts. Find the contact you would like to audit, then click on the last updated date.
You can now view who added the contact, when they were added, and more. Click the carrot drop down to view contact permissions.
Click the carrot drow down next to Show contact audit in fund commitment to view a contact audit across investments.
To view recent changes made to contacts, sort your contact list by clicking the Last updated column header.
How do I learn more or get help?
To learn more about LP Contact Audits, check out this support article or reach out to your Relationship Manager for a demo.
Submit invoices directly on Carta. Now, you can skip the back-and-forth over email and upload all the required information to set up a wire in two simple steps.
What’s valuable about this change?
From the moment you initiate a vendor payment to when your wire is set up, you can track its progress from anywhere, at any time. Plus, you can maintain your operational cadence and submit invoices to Carta in bulk.
What do I need to do?
How do I learn more or get help?
Get in touch with your Relationship Manager or talk to one of our representatives today.
]]>Starting August 10, 2023, companies that issue NSOs and RSUs with event-based performance conditions attached to their vesting schedules will now be able to automatically calculate and expense these awards in their SBC Expense, Disclosure, and Dilution reports. Previously, companies that gave out awards with event-based performance conditions calculated their SBC Expense, Disclosure, and Dilution values manually outside of Carta.
All Carta Cap Table users with Financial Reporting in their subscription. If you do not yet have Financial Reporting in your subscription, please talk to your Account Manager or email 718@carta.com.
If an award has a performance condition, it means that the award has a vesting condition that is subject to performance-based criteria. An event-based performance condition is one in which vesting is contingent on a liquidity event such as an IPO. Carta’s cap table includes support for NSO and RSU awards with event-based performance conditions. Now, companies that issue NSOs or RSUs with event-based performance conditions can automatically expense these options in their financial reports.
Companies can choose to use either Carta’s default fair value assumption or to create a customized one. Carta’s default fair values assumption is calculated with the Black Scholes pricing model, using your company’s Fair Reporting Value at an award’s grant date.
Not at this time. Companies can only expense awards with event-based performance conditions in US GAAP.
Yes. As of September 14, 2023, companies that issue NSOs and RSUs with event-based performance conditions attached to a specific vesting date can be expensed using our Financial Reporting tool.
If you have more questions about our Financial Reporting product, please contact 718@carta.com.
]]>Institutional investors can now view confirmed sell-side opportunities directly on Carta. Investors can view, filter, and review the full set of confirmed sell orders, along with details about company fundraising details, Reference Price Range (if applicable) and applicable transfer restrictions.
Investors can also submit an indication of interest in purchasing the shares listed.
How does it work?
Log into your Carta account, enter the Liquidity platform, and navigate to the “Marketplace” tab. From there, investors can browse opportunities.
You can submit interest in buying shares listed on Carta:
Note that all indications are private and are only shared with the market following a conversation with a representative from our Private Capital Markets team.
Who is this available to?
This is only available to Carta Liquidity customers. If you’re interested in learning more about Carta Liquidity and get access to the platform, please reach out to investor_coverage@cartacapitalmarkets.com or your account manager.
Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.
]]>Carta Total Comp has two new data updates: New specializations and updates to our international data.
Our benchmarks now support three new specializations in the Sales job area:
Note: Our sample size for new specializations can be smaller than job area benchmarks, which could result in data volatility as we continue to update the data and grow our overall sample size.
Additionally, we have updated international market adjustments and the six-month rolling exchange rates that are used to convert USD to international currencies. These new adjustments and exchange rates are live for all Carta Total Compensation customers. Note that in the following countries, salary and/or equity adjustments have changed by 10% or more: India, Brazil, Ukraine, Hungary, Mexico, Armenia, Estonia, and United Arab Emirates.
You can view benchmarks for the new specializations by:
1. Visiting the Benchmarks page and selecting “Sales” under Area. Once the job area is selected, you can select any of the new specializations by selecting the Specialization dropdown.
2. This will allow you to view salary/equity benchmarks for levels 1 - 8 for Sales/Solutions Engineering. For Account Executive and Sales Development Representative, data are available for levels 1-6.
3. The above process can be followed for each of the new specializations.
The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the new Sales specializations will now be calculated using the target compensation for the specialization, not the job area.
You can update your compensation plan to use the latest benchmark versions either by visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
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.
1. To see new international market adjustments, navigate to the Plan tab and scroll down to International Market Adjustment.
2. Market adjustments will automatically be updated. You can customize any adjustments by using the Edit button on the right.
The Carta Total Compensation team is working on our Q3 benchmark refresh for all job areas and specializations
]]>Send reminders for pending capital calls in one click.
What’s valuable about this change?
Ditch following up with LPs over email. Instead, you can quickly identify which investors haven’t completed their capital call and send them a reminder directly on Carta.
What do I need to do?
Use the “Notify investor” button to initiate reminder emails for either all pending capital calls or specific due dates
Note: Pending Investor tags may be delayed by up to 48 hours.
How do I learn more or get help?
Get in touch with your Account Manager or talk to one of our representatives today.
Send capital calls and distribution notices to your investors in a few clicks.
What’s valuable about this change?
You can now approve a capital call or distribution and send notices to LPs immediately or schedule them for a later date.
What do I need to do?
How do I learn more or get help?
Get in touch with your Account Manager or talk to one of our representatives today.
]]>Call capital more precisely on Carta.
What’s valuable about this change?
Now, you can call capital by dollars or percentage of total commitments, up to the hundredth decimal place.
What do I need to do?
How do I learn more or get help?
Visit this article for a more detailed look at the capital call request tool.
Once the due date is updated, your capital call PDFs will automatically update with the new due date so you can quickly review and approve.
How do I learn more?
To learn more about Carta Carry, check out this support article or reach out to your Account Manager for a demo today.
Don’t have the app? Download it on iOS or Android.
We’ve added an investor breakdown view before you submit or approve a capital call so you can see the contribution amount per investor.
What’s important about this change?
You now have a transparent view into the amount each LP is contributing to a given capital call from your phone.
How does it work?
Select Request capital call from the Quick Actions available on your home screen and fill in the information requested.
On the View Summary screen, click View next to Investor Breakdown to see the contribution amount for each investor in both dollars and percent.
Once ready for approval, you can view the investor breakdown by tapping Review, then clicking View next to Investor breakdown on the Review Capital Call page.
How do I learn more?
To learn more about Carta Carry, check out this support article or reach out to your Account Manager for a demo today.
]]>Employees who have access to Carta Tax Advisory through their employer now have access to International Tax memos for their country*
The Tax Memo includes information about the cost and tax implications of owning equity in a private company. Each tax memo is tailored to the specific country an employee resides and includes information on:
You can access the new feature directly from your portfolio, or navigate to the ‘Learn’ page in the navigation bar.
Have questions? Contact product@carta.com
*Initial countries limited to: United Kingdom, Australia, Canada, India, and Israel
Starting today, customers can export data from the Benchmarks page as a CSV file to use in their compensation analyses outside of Carta Total Compensation. The feature is active for all Carta Total Compensation customers and can be accessed from the Benchmarks page.
1. Navigate to the Benchmarks page in Carta Total Compensation.
2. Choose the specific filters for the data you’d like to export, including the Location, Area, Specialization, Track, and compensation type.
3. Click the “Export” button that appears under the filters.
4. Open the downloaded file to see your data.
Carta Total Compensation is developing benchmarks for new specializations.
If you have any questions about how to export Benchmarks data or if you have suggestions for additional export functionality, please reach out to your Customer Success Manager.
]]>Log in to your Carta account and navigate to the Learn page to see personalized reccomendations to help you understand your equity compensation!
In Carta Total Compensation, you can now use a simple guide to:
With fully leveled employees, you can leverage the power and insights of all Total Comp features, including Reports and Employee Scorecard. This feature eases that process by simplifying what employees need attention.
If you already have Total Compensation set up, you will see a banner at the top of your Total Comp page that will take you directly to a new flow.
As you’re assigning Levels to Job Titles, check out our leveling guide for guidance.
If you’re setting up Carta Total Compensation for the first time, use the new onboarding flow to level the employees pulled in from your HRIS (Human Resource Information System).
If you have any questions about leveling your employees, please reach out to your Customer Success Manager.
]]>Introducing 83(b) election for founders. Founders can now more easily comply and file an 83(b) election with the IRS. This release automatically generates the 83(b) form, instructions on how to file it with the IRS, and an email notification that includes issuance date and days left to file.
Why is it valuable?
Individuals filing an 83(b) election may potentially reduce their tax obligations by choosing to pay taxes on the fair market value (FMV) of their securities at the time of granting rather than after vesting.
How does it work?
83(b) for founders is available in all Carta plans. This feature will be automatically available for all founders that have accepted founder stock within the last 30 days.
How do I learn more or get help?
To learn more about 83(b) for founders, check out this support article or reach out to your Account Manager for a demo.
]]>We’re delivering quarterly financial packages early.
What’s valuable about this change?
Starting today, July 5th, select customers will receive draft financial packages just after quarter-end. This is made possible by the fully integrated Carta General Ledger, which keeps your information up-to-date with every transaction, and an extensive list of data controls in our technology.
With your packages ready for review earlier, you unlock more time to focus on the things that matter, whether that be sourcing your next deal or fundraising for your next close.
What do I need to do?
If you’d like to be included in this pilot program, please reach out to your Account Manager.
How do I learn more or get help?
If you receive a draft financial package, please review it and approve it or request changes to your Fund Admin team directly in Carta.
Introducing the Activity tab—bringing speed, organization, and transparency to your back office.
What’s important about this change?
Fund managers now have a one-stop-shop for requesting, tracking, reviewing & approving all of their fund admins’ tasks.
Additionally, fund managers can message their fund admin directly from the Activity tab, consolidating all Carta communication in one place.
How does it work?
Navigate to the Activity tab.
First, you’ll see a list of requests you need to complete under Action items. Select Details to view additional information about the request, like the progress and which fund admin is working on it.
Click on the linked request next to Current Item to complete the request. If you have any questions, you can message your fund admin directly through the request thread.
Submit requests to your fund admin through the Quick Actions sidebar. If you do not see a request, please use the Message your fund admin button to submit any request.
Once a request is submitted, you can track the progress to completion. Scroll down and select Fund Admin Tasks, then select Details on the request you’d like to track. In addition to the status of the request, you can view details like the request date and which fund admin is working on the task.
You’ll receive both email and in-app notifications for all tasks in your Activity tab so you never miss an update. To change your notification preferences, click Settings under the Quick Actions sidebar.
Last, to view an archive of all requests completed, select Task History.
How do I learn more or get help?
To learn more about your Activity tab, check out this support article or reach out to your Account Manager for a demo.
On-the-go? You can now access the Activity tab from anywhere with our new mobile app, Carta Carry.
]]>We’ve redesigned the Bands page to make it easier to search for and view the compensation benchmarks you need. The new user experience is active for all Carta Total Compensation customers and can be accessed here.
There are 3 main changes:
1. Role and location filters can now be found at the top of the page, rather than along the left-side of the page.
2. You can view benchmarks for different compensation categories using the new buttons on the top of the page.
The new “All data” view allows you to see salary, total cash, and equity benchmarks all at the same time. Once selected, you can choose the exact benchmarks that you’d like to see side-by-side.
3. Our visualization is now hidden by default to help you get to the data you need quickly. However, you can always view it by clicking the “Show visualization” button above the benchmarks table.
We’ll be adding export functionality to the Bands page to allow customers to download Carta Total Compensation data as a spreadsheet.
If you have any questions about the new look of the Bands page please reach out to your Customer Success Manager.
]]>You can now pull automated expense and disclosure reports for profits interests with vesting schedules that include time-based conditions and event-based performance conditions.
ASC 718 reporting involves expensing each equity grant on your company’s income statements, which are subject to audits. With Carta, you can now simplify expense reporting for profits interests:
ASC 718 financial reporting is available as an add-on to your current Carta subscription. Please reach out to your CSM to learn more and request a demo.
If you currently have ASC 718 financial reporting enabled on your Carta account, navigate to the Financial reporting tab to generate your reports.
If you need help with your Carta-generated financial reports, contact our dedicated ASC 718 support team.
If you’re interested in automating ASC 718 financial reporting with Carta, please reach out to your CSM to learn more and request a demo.
]]>We’ve made updates to the Interest Summary to provide Admins and interest holders more visibility into preferred returns.
You can now easily see the total accrued value for each interest based on the compounding period and accrual rate. The new preferred returns section provides visibility into the:
Navigate to the Interest Details page for an interest and find the Preferred Return section at the bottom of the Interest Summary tab. Note that the interest type must be enabled with “preferred returns” for this section to appear in the interest details summary. Contact your CSM for more information.
For more information, visit our support site.
]]>Legal Administrators can now group multiple cities under a single local jurisdiction for tax withholding purposes.
Issuers now have greater flexibility in capturing jurisdictions where their participants pay taxes, particularly for county-level taxes or jurisdictions that are not specific to countries, states/provinces, or cities.
Navigate to Carta’s Tax jurisdiction and rates table by following Compliance & Tax -Tax Rules-Tax jurisdictions and rates.
Add a jurisdiction below the state or province level and select Multi-Regional Tax Jurisdiction. Enter all of the cities that belong to that jurisdiction.
The jurisdiction is then displayed as Multi-Regional. Any tax rate or rule set for the jurisdiction will apply to all stakeholders with tax addresses containing any of its included cities and will be used to calculate tax withholding for applicable transactions.
Get real-time updates when your portfolio companies on Carta raise a new round.
What's important or valuable about this change?
Now, all Fund Administration clients get automatic notifications when their investments on Carta add a new share class to the cap table with filed Articles of Incorporation. We'll also include the original issue price of the new share class – helping you maintain the latest information on your investments.
What do I need to do?
You will receive an email when your portco adds a new share class with a new price-per-share from the original issue price on the Articles of Incorporation. A task will also appear in your Activity tab. There, you can view the new price-per-share, its impact on your fund metrics like IRR and gross multiple, and update your SOI in a few steps.
How do I learn more or get help?
Visit this support article for a detailed FAQ. Have more questions? Your Fund Admin team is here to help.
]]>Beginning on June 21, customers with both Carta 409A and Financial Reporting in their subscription will begin receiving two separate, audit-defensible reports: one with the Fair Market Value (FMV) used for tax purposes, and one with the Financial Reporting Value (FRV) used for accounting purposes.
Delivering these reports separately will more closely align with a changing regulatory environment in which tax guidelines under 409A and accounting standards under ASC 718 diverge.
Historically, Carta has only delivered a single report that values our customers' common stock under section 409A of the tax code. This singular report would double as a valuation used for both tax and accounting purposes, which introduced challenges for customers going through audits - companies are incentivized to keep their FMV low to keep options attractive for employees, while auditors may push companies to increase the Fair Value of stock when calculating stock-based compensation expense.
Disambiguating these two concepts allows our customers to work more flexibly with their auditors while still keeping options and other equity awards attractive as incentives for hiring and retaining talent.
If you're a customer with both Carta 409A and Financial Reporting in your subscription, you'll receive two reports the next time you request a 409A valuation from Carta: one with the Fair Market Value (FMV), and one with the Financial Reporting Value (FRV).
The FMV can be used as normal: pricing options, helping employees estimate their tax burden when exercising, Form 3921 filings, etc. The FRV can be used in Carta's Financial Reporting product to calculate the expense associated with stock-based compensation. Customers can work with their auditors to either directly use the provided FRV or adjust it from within Carta's Financial Reporting product as necessary.
For customers with access to both Carta 409A and Financial Reporting in your subscription, you’ll see an additional card for FRV at the top of the Valuations homepage in Carta (Compliance & Tax > 409A Valuations) once you receive and accept a new valuation report from Carta:
You'll also see an extra column in the table at the bottom of the Valuations homepage which shows historical FRVs side-by-side with historical FMVs:
And in Financial Reporting, you'll also see text changes when configuring a scenario:
We've created a few help articles with detailed information about FRV and how this value differs from FMV and appears in Carta:
If you've received your FRV report and have further questions, feel free to reach out to val-operations@carta.com - we'd be happy to help.
]]>Employees who have access to Carta Tax Advisory through their employer can now book 1-1 sessions with a Carta Equity Tax Advisor directly on the Carta iOS mobile app.
This release allows employees to select a session, book a time, and join their session all directly in the Carta app.
Employees with access to Tax Advisory will see this feature on the home screen of their portfolio in the iOS app. To download the Carta visit the Apple App Store.
Have questions? Contact product@carta.com.
]]>Customers can now download reports directly from the company Scorecard page to gain additional insights into their compensation programs. There are 3 reports available to download:
You can download your Reports from the top of the Scorecard page.
These reports are currently in beta, so we’d love to hear your feedback as we continue to test and improve them.
After you download a report you can provide feedback directly in Carta Total Compensation. Your feedback will help us improve future versions of these and other reports on our roadmap.
We’ll be releasing other reports over the next couple of months. If there are specific reports that you’d like to see in Carta Total Compensation or have any questions, please reach out to your Customer Success Manager.
]]>We’ve enhanced the Activity tab in our GP Portal so Carta fund managers can do even more from one place.
What’s important or valuable about this change?
We’ve expanded the requests fund managers can submit in their Activity tab to include the ability to make a new investment, add a subsequent close, and transfer holdings to a new LP.
Once submitted, they can track the status of that request and receive detailed notifications to update them of any status changes.
Additionally, fund managers can now message their fund admin directly from the Activity tab, consolidating and organizing all Carta communication outside of their inbox.
What do I need to do?
Navigate to the Activity tab.
You can now submit additional requests through the Quick Actions bar. If you do not see a request, please use the General Inquiry button to submit any request to your fund admin.
Once a request is in progress, we’ve added additional email and in-app notifications so you stay up-to-date on the progress of your fund’s tasks. These include missing information and action required so you know exactly what’s needed from you to complete a request.
We will be making further improvements to the Activity tab over the coming weeks including the ability to schedule a call with your fund admin.
How do I learn more or get help?
To learn more about our improved Activity Tab, check out this support article or reach out to your Account Manager for a demo today.
Beginning in May 2023, we are launching a new navigation experience - making it easier than ever to navigate your cap table, create and issue new securities, and manage relations with your stakeholders.
We are testing this experience with a select list of companies. Companies in this test will now navigate Carta’s equity management platform from the left-hand side. We are using this test to iterate on any improvements that need to be made and hope to roll out to 100% of new and existing companies by Summer 2023.
The new menu can also be collapsed for an optimized viewing experience by clicking the menu icon to the right of the Filter text box once you’ve landed in the right spot.
The new navigation will make it easier for you to find what you’re looking for and complete critical tasks, with menu categories that are more intuitive and organized according to the type of task that needs to be completed within Carta.
Menu category | What you will find there |
Filter Menu | Narrow down your menu options to quickly find what you’re looking for |
Dashboard | View your company data and explore insights |
Essentials | Most frequently accessed pages, in one click |
Cap Table | View and understand your cap table |
Securities | Issue and view securities |
Stakeholders | Manage stakeholder information |
Fundraising | Raise money for your company |
Compliance & Tax | Ensure your cap table is compliant |
Documents | Manage documents and communications with stakeholders |
Settings | Configure your company’s settings |
More | Explore additional Carta cap table products such as Carta Total Compensation and Tax Advisory |
We have also updated some of the terminology that appears throughout the Carta platform to clarify specific tasks and workflows. The changes that we’ve made are outlined in the table below.
New | Old | Where do I find it? |
Dashboard | Company summary page | Dashboard |
View cap table | View by share class | Essentials *Note that this page will still be labeled View by share class under the Cap Table menu |
Manage stakeholders | All stakeholders | Essentials Stakeholders |
Draft certificates | Certificate | Essentials |
Draft options grants | Option grant | Essentials |
Run reports | Reporting | Essentials Cap Table |
Cap Table | Capitalization | Cap Table |
Review cap table health | Account health checks | Cap Table |
Cap table access | Shareholder experience | Cap Table |
Review exercises | Exercises | Securities |
Securities templates | Templates | Securities |
Run scenario models | Scenario modeling | Fundraising |
Compliance & Tax | Compliance and Tax (separate menu items) | Compliance & Tax |
Rule 701 Disclosures | Disclosures | Compliance & Tax |
Tax Rules | Withholding configuration | Compliance & Tax |
Company documents | Library | Documents |
Board activity | Board notifications | Documents |
Company financials | Financials | Documents |
Settings | Company settings | Settings |
Total Compensation | Total comp | More |
Why is Carta making this change?
Carta offers a wide range of products and services, and users sometimes get lost as they look through menu items in an effort to find the workflow or platform page they need to access. We understand that time is money, and the less time you spend locating the resources you need frees up more time for you to spend growing and managing your company. The new left-side menu enables users to have an immediate comprehensive view of Carta’s functionality with clearer verbiage, menu filtering, and collapsible dropdowns.
Can I revert back to the old navigation experience?
No. Our research has shown that our new navigation menu is not only more intuitive for users, but also faster. Beginning in May 2023, Carta is fully migrating away from the top navigation menu. We plan to be rolled out to 100% of companies by July 2023.
How do I use the new navigation experience to find what I’m looking for?
The new navigation experience includes a filter to assist you in finding what you’re looking for. The menu will responsively pare down as characters are entered in the text box.
Additionally, left-side navigation enables you to expand and collapse multiple dropdowns at the same time, allowing for a more comprehensive overview of Carta’s functionality at a glance.
Did Carta remove any features?
No. While the new menu may look more compact than in our current experience, all of the features that you have come to rely on are included in the new navigation. The goal of this initiative is not to change the functionality of Carta’s cap table, but rather, to make that functionality easier for you to find.
What’s new?
Market Trends
Salary and total cash compensation benchmarks have fallen slightly (approximately 1% overall) since last quarter, reflecting a continued down market for startup talent. We’re observing that new hire salaries across many roles are closer to or below our previous benchmarks, causing many salary benchmarks to decrease. On a role-by-role basis, we’re seeing a bit more volatility in this quarter’s data as compared to the last six months. As in previous updates, specialization-level data continues to be more volatile than the broader sample, as sample sizes for these roles are smaller than job area level data.
Equity benchmarks have decreased approximately 9%, less than last quarter’s 15%. Lower benchmarks cut across most roles and levels, though executive equity grants dropped slightly less, and even increased in some cases.
Looking across updated geographic differential data, most metro areas that moved closer to San Francisco pay levels have maintained their differentials compared to last year. This year, we see more cities outside of traditional tech hubs also moving closer to San Francisco pay levels (in particular metro areas across North Carolina and Florida)
What were the largest areas of movement from these benchmarks?
Salary - Sales, Research, and Strategy roles saw the largest increases, approximately 1-5% versus last quarter. Marketing, Administration, and Project Management roles saw the largest decreases ranging from 5-6%. The decreases for Marketing and Administration are driven by corrections that we have made for how certain roles are being categorized within these job areas. Information Technology also saw a larger decrease, largely due to the small sample size for this job area.
Equity - Support, Human Resources, and Strategy roles saw the largest decreases. Decreases in Product, Finance, and Operations were less pronounced than the overall sample
How do I update my plan to use the new benchmarks version?
You can update your compensation plan to use the latest benchmark versions either by:
Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
Navigating to the Bands page and clicking on the "Update" bubble in the top left.
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.
What’s next?
Carta Total Compensation is developing benchmarks for new specializations.
Stakeholders that have sold through Carta Inc.’s tender offer feature or Carta Inc.’s public markets product can now view the delivery status of their 1099-B tax document. This new feature allows sellers to determine that their 1099-B for a particular selling year:
How does this improve the stakeholder’s experience?
1099-B forms capture the capital gains reported to the IRS for sales done on Carta. Sellers use the information on their form 1099-Bs to file their taxes.
Not all sales done on Carta Inc.’s tender offer tool or Carta Inc.’s public markets product are reported on 1099-Bs. Prior to the release of this product, stakeholders have reported challenges in determining why they did not receive a 1099-B for a calendar year. This tool allows stakeholders to determine the status of their 1099-B quickly and clearly.
1099-Bs might not be provided for several reasons:
How does it work?
The stakeholder navigates to account:tax documents where all 1099-B documents are stored, and clicks on the “Missing a Form 1099-B” link:
From here, the participant can select the tax year and check the status on that year’s 1099-B:
The tool will indicate that either the 1099-B has already been distributed, or will give the reason that the stakeholder has not received a 1099-B for that year.
]]>Carta now supports automated preferred return waterfalls.
What’s valuable about this change?
If you have a preferred return hurdle, your Fund Admin team will automate and review waterfalls directly in the Carta app. These improvements enable us to process more complex calculations in real-time, resulting in faster book closures, more secure data entry and the ability to view fund metrics in the app as they happen.
What do I need to do?
No action is needed. Your teams will start to calculate this performance hurdle online immediately.
How do I learn more or get help?
Reach out to your account manager or talk to one of our representatives today.
]]>What do I need to do?
After submitting a distribution request in Carta, click Request Wire Instructions. You can also initiate this request at any time by using the Request Wire Instructions button on the Partners page.
Select the individual investors or group of investors you’d like to send a request to. Set a deadline and optionally customize the email message your LPs will receive. Review the contacts that will receive the notification and then click Send.
Your investors will receive an email asking them to add or confirm their wire instructions are current. After clicking Review wire instructions, they’ll be directed to their LP Portal where they can easily add or update in a few clicks.
You’ll now see an updated status in your Partners tab of Confirmed or Pending (awaiting confirmation from your LP) with the date of confirmation or the date the request was sent. Giving you increased visibility into how current your LPs wire instructions are.
How do I learn more?
For more information on the GP side of this feature, please check out our step-by-step guide. For LPs, click here.
To learn more about how Carta ensures the accuracy of your investors' wire instructions, check out our Audit Trail feature or reach out to your Carta representative to learn more today.
This change will impact all private and public corporations who move money directly on Carta, as well as holders of securities from these firms. LLCs will not be impacted by this change.
There is a slight variation in how long ACH transfers will take depending on what type of transaction the company or holder is making. The estimated processing times for the following transactions are below:
Company administrators with the Option exercise approver role are able to individually review the submitted online option exercise requests and historical option exercises from the Transactions > Exercises page on Carta. For detailed instructions, you can check out this support article.
Use the Filter function to select Yes for Early exercise to track 83(b) elections from the option holders. The ledger will display a filing status that depends on when the option holder originally submitted the early exercise request and whether or not the option holder explicitly chose to file an 83(b) election. Learn more about the 83(b) election.
Exercising options into shares on Carta via ACH is available to US-based option holders of US private companies exercising ISOs, NSOs, or ISO/NSO split option grants. You can review detailed instructions in this support article.
]]>With our new Cap Table Access page, company administrators can designate what type of information they want to share with their different stakeholders and set rules based on these preferences. By setting permissions by rules instead of a stakeholder-by-stakeholder process, we make it easier for company administrators to get the right stakeholders the appropriate information and reflect their information-sharing philosophy.
We are making this available to all companies on Carta as of April 2023.
Companies have historically been able to grant viewing permissions to their stakeholders via our Cap Table Sharing page and features. This experience, however, was burdensome for many company administrators who found themselves having to change sharing settings as new stakeholders were added to their cap table or existing stakeholders changed their relationship to the company, such as an employee leaving the company or an investor exiting their position.
To update your Cap Table Access settings, navigate to Stakeholders > Cap Table Access.
With our new Cap Table Access page, company administrators can designate what type of information they want to share with their different stakeholders and set rules based on these preferences. By setting permissions by rules instead of a stakeholder-by-stakeholder process, we make it easier for company administrators to get the right stakeholders the appropriate information and reflect their information-sharing philosophy.
Companies can choose to enable a group of stakeholders with a specific level of access based on their relationship with the company. For example, companies can choose what information founders, investors, employees, former employees, and other stakeholders access on Carta. We’ve renamed, updated, and simplified our access levels to Restricted, Basic, Advanced, and Full Details. We include a “Recommended” level for different relationships (e.g. Investors = Advanced) to help guide founders and other company administrators on setting up their Cap Table Access settings based on user feedback.
We’ve also added a new rule where former stakeholders--those who no longer have an active investment or holding in the company--will be downgraded to Restricted automatically. This means that as stakeholders enter and exit the cap table, their respective levels of cap table access will update automatically.
New Cap Table Access page: Group levels
We know that sometimes it’s important for company administrators to create experiences specific to a single stakeholder or user. The new Cap Table Access feature allows companies to set overrides for specific stakeholders in the “Individual levels” tab. We also provide information on that stakeholder’s relationship and holdings information.
New Cap Table Access page: Individual levels
Edit an Individual's Cap Table Access Settings
To help ensure company administrators set access levels that best fit the needs of their stakeholders, our access level guide is clickable from either the Group Level or Individual Level views of the new Cap Table Access page.
View the Access level guide
We appreciate our users’ feedback on how to make this page clearer and easier to use. We hope these improvements save company administrators valuable time and help them mirror their company information-sharing philosophy in our software.
Employees will now see videos from our 'Learn' library in their Session recap. The videos shown are recommended by their Carta Equity Tax Advisor, based on the conversation in their 1-1 session.
You can access the new feature by navigating to your Session recap either through email or directly on the 'Tax Advice' page in your portfolio.
Have questions? Contact product@carta.com.
]]>Companies on Carta that have an HRIS integration. If your company does not currently have an HRIS integration set up, you can do so by navigating to your Settings -> Integrations.
Companies should take the following steps to terminate 1-25 stakeholders at once:
The current experience allowed for single employee terminations only. Each termination required the company admin to access multiple pages and take multiple steps.
The best way to access this feature is to add an HRIS integration to your account. Carta supports over 100 HRIS providers. Connecting Carta to your HRIS will help you reduce time spent manually inputting data and ensure data accuracy as your stakeholder information changes over time. You can read more about how to connect your HRIS here.
I did a bulk termination incorrectly and I need to undo it. Can I reverse these terminations in bulk?
Not at this time. You will need to reverse each termination individually. You can review the instructions in detail in this support article.
You can review detailed instructions in this support article or reach out to Carta support to learn more.
We’re excited to announce the release of three new specializations:
Note: Our sample size for new specializations can be smaller than job area benchmarks, which could result in data volatility as we continue to update the data and grow our overall sample size.
No other benchmarks have changed in this update.
You can view benchmarks for the new specializations by:
The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the Art & Graphic Design, Product Management, and Social Media specializations will now be calculated using the target compensation for the specialization, not the job area.
You can update your compensation plan to use the latest benchmark versions either by:
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.
The Carta Total Compensation team is working on our Q2 benchmark refresh for all job areas and specializations
]]>You can now bulk download a large volume of documents from the Documents Library.
Admin users can download as many documents as they need to in one go from the Documents Library. This helps speed up tasks around tax season, such as downloading all the Form K-1s.
Select the documents you need to download, and click Actions → Download documents.
The zip file will be available for you to download in the Downloads section at the top right.
For more information about the Documents Library and distributing K-1s, visit our support site.
]]>A new fast-fill feature is available when processing a large volume of terminations.
When making changes to a large volume of interests, the fast-fill feature lets you make them to multiple interests altogether instead of one by one.
This helps you get through cap table update tasks, such as bulk termination of interests, more efficiently.
The fast-fill feature is available in the interest termination workflow today and will be available for more workflows soon. Click the lightning bolt button to the top left of the interests you’re terminating to fast-fill the termination reason and date.
When you click on Fill column, you can choose to fill empty fields only or all fields, which provides you the flexibility to customize the termination reason and date for certain interests first and then fill in the rest with the same reason and date.
For more information about terminating interests, visit our support site.
]]>Admins can now convert notes and SAFEs into other types of interests in Carta.
Convertibles like notes and SAFEs are used by companies to raise money when they’re starting out. You can keep track of convertibles in Carta and when certain thresholds are met, convert them into actual equity.
With our latest features, you can convert notes and SAFEs into other types of interests, issue these interests to investors, and automatically update your cap table.
To get started, select the notes and SAFEs you want to convert from the interest ledger, click Actions, and Convert Interests.
You’ll need to have the following information available:
In a few steps, you’ll provide the conversion event details, the quantities to convert, and confirmation of the conversion.
For more information, visit our support site.
]]>You can now create a custom vesting plan for a particular interest.
Instead of creating a new vesting template, you can now create a custom vesting plan for an interest to accommodate a bespoke vesting schedule with time and performance conditions specific to the holder’s interest agreement.
Navigate to the Interest Details of the interest you want to customize the vesting plan for and then click on the Vesting tab. Click the Correct vesting plan button in the top right.
You can customize the vesting plan for this particular interest granted to this interest holder.
For more information on vesting schedules, visit our support site.
]]>International salary and equity targets are now on both the company and employee Scorecards. This now enables users to easily compare non-US employee compensation to the market, similar to how comparisons are currently shown for US employees. International bands data continues to be available on the Bands page.
On the Company Scorecard, users can see a complete view of all employees. Users can toggle between local currency and USD by clicking the checkbox at the top.
View an Employee-level Scorecard by clicking into any employee for additional information on their salary and equity. By default, employee cash compensation and market targets will be shown in the employee’s local currency. Users can toggle between local currency and USD using the checkboxes at the top of the employee scorecards.
As Carta Total Compensation only supports equity granted in USD, net equity values on all scorecards will only be shown in USD.
No action is needed. The scorecards will update automatically with the appropriate data.
Carta Total Compensation is developing benchmarks for new specializations.
]]>Employees who have access to Carta Tax Advisory through their employer now have access to new, personalized educational content in their Carta portfolio. The release contains a few features for employees:
1. New Learn page with personalized education chapters.
The Learn page will have videos organized in personalized chapters, based on your equity and employment status. Chapters include:
2. Video player page with remaining videos in the chapter
3. 'Recommended for you' videos on the portfolio page
4. Schedule a session button on the portfolio home page
You can now easily schedule a 1-1 session with your Carta Tax Advisor, directly from your portfolio.
5. Coming soon: Recommendations will be driven by your 1-1 conversation with a Carta Tax Advisor!
You can access the new feature directly from your portfolio, or navigate to the ‘Learn’ page in the navigation bar.
Have questions? Contact product@carta.com.
]]>RSU holders now can see a summary view of their securities in the details tab, including an overview table with units breakdown. Also, double trigger RSUs are no longer stuck in a zeroed state, they can now see a breakdown of vesting information, including time-vested amounts.
RSU holders will see the following information on the RSU details page:
The bottom of the details tab will now include an employee education modal, which will be used to surface important education about their RSUs.
Now, holders can see the cumulative values for all vesting conditions applicable to their RSUs, which can be time or milestone based, with or without additional performance conditions.
We’ve updated the Vesting Schedules tab to account for the following scenarios (screenshots of each below):
Double trigger RSU (Based on time and an additional condition)
Double Trigger (Based on milestones and an additional condition)
Single trigger (Based on time)
Single trigger (Based on milestones)
RSU has been terminated or expired
Visit the resource center for more details
Have additional questions? Check out support.carta.com to learn more.
]]>Take control of your investor communications with proactive scheduling.
What’s valuable about this change?
Specify the date you want notices to be shared with your investors for capital calls or distributions, and your Fund Admin team will proactively schedule the notification.
What do I need to do?
When you request a capital call or distribution in-app, you can choose an Issue date. This will be the date notices are sent to your LPs.
How do I learn more or get help?
Reach out to your account manager or talk to one of our representatives today.
]]>What do I need to do?
Select the entity and navigate to the Partners tab. Click the three dots next to the investor's name that you want to view the details of instructions for.
View information like confirmation date, confirmation person, and bank details. You can also view which LPs have not yet provided their wire instructions, noted by the status of Missing, in the Wire Info Status column.
Coming soon: We’ll be releasing an even easier way for you to request LPs confirm the accuracy of their wire instructions in Carta.
Make critical updates to your capital calls when it matters most.
What’s valuable about this change?
Now, you can revise wire instructions on an active capital call, and new notices will be created for your partners on Carta.
What do I need to do?
Get in touch with your Fund Admin and they will edit the wire instructions for you.
How do I learn more or get help?
Reach out to your account manager or talk to one of our representatives today.
Access time-sensitive LP audit confirms, on demand.
What’s valuable about this change?
If your LP is a fund of funds or they are audited, they will likely ask you to complete an audit confirmation for them. This report details information such as their commitment amount and amounts contributed.
What do I need to do?
If your LP's audit team sends you a request to verify the LP's commitments in your fund, reach out to your Fund Admin team and they can quickly pull together the information you need.
How do I learn more or get help?
Get in touch with your Account Manager or talk to one of our representatives today.
]]>What do I need to do?
Navigate to the Documents tab of your LP Portal and select the tax year you’d like to access tax documents for.
See which documents you’ve already viewed and which entities have shared their K-1s versus which are still pending.
Download documents individually by clicking View or bulk download documents by clicking Download all.
How do I learn more or get help?
Have additional questions about how Carta can support you and your LPs during tax season? Reach out to your account manager or talk to one of our representatives today.
Employees attending 1-1 sessions with Carta Tax Advisors will now receive a post-session recap in their Carta portfolio.
Sample session recap:
The session recap will contain:
You can access the session recap directly from the Tax Advice page in your portfolio or from the email sent to you after your 1-1 session is completed.
Have questions? Contact product@carta.com.
]]>Employees with Carta's iOS application and notifications enabled will now receive reminder notifications, 15 minutes ahead of their Carta Tax Advisory session. If you have the Zoom application on your phone, the notification will open the Zoom meeting directly and enable you to join the session on your phone.
To receive the notification:
Have questions? Contact product@carta.com.
We’re excited to announce the release of two new specializations:
Note: Our sample size for new specializations can be smaller than job area benchmarks, which could result in data volatility as we continue to update the data and grow our overall sample size.
No other benchmarks have changed in this update.
You can view benchmarks for the new specializations by:
The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the UX Design and Logistics and Supply Chain specializations will now be calculated using the target compensation for the specialization, not the job area.
You can update your compensation plan to use the latest benchmark versions either by:
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.
]]>Companies now can decide how they want their shares to be reallocated within the vesting schedules when stock splits are performed. Two vesting strategies can be selected now:
Option 1: Reapply templates
When companies choose the reapply templates option, Carta will automatically reapply the template for all securities with template vesting schedules upon performing the split. This means that Carta will re-calculate the vesting schedules attached to securities, considering the new total quantity. This can change how the vesting is distributed among the tranches since it will be an entirely new vesting schedule.
For example, a 10 shares grant that time vests with tranches of 2 and 3 shares will, after a 1:10 split, have tranches of 25 shares each if the company chooses this option.
Option 2: Apply stock split ratio to all tranches
When companies choose to apply the stock split ratio to all tranches, Carta will multiply the stock split ratio by each tranche. In case the shares remaining in a tranche are fractional, the platform will then round down to the nearest integer. This results in fewer differences in the schedule from the pre-split to the post-split security. If a security is tied to a template vesting schedule, Carta will need to update it to a custom schedule to make this change. Custom vesting schedules cannot be reapplied later, as they are not part of any templates.
If companies choose this option, a 10 shares grant that time vests with tranches of 2 and 3 shares, after a 1:10 split, will have tranches of 20 and 30 shares each if this option is chosen.
Why is this important?
Different companies need their post-split vesting schedules to be represented differently. With this change, Carta becomes more flexible to adjust to different vesting scenarios. Having more vesting accommodation strategies also means less time dedicated to manual adjustments after a stock split is performed.
How can I learn more about this?
You can find a detailed explanation of the new vesting strategies with vesting schedule examples in this support article.
]]>Private companies on Carta can now run Dilution reports. The Dilution report will include:
All 3 of these values will help customers calculate Diluted Earnings Per Share for their income statement.
What’s important or valuable about this change?
Private company Financial Reporting administrators will be able to run a Dilution Report that will provide them with major inputs into the Diluted Earnings Per Share formula.
In this release, the following will be available:
Shares outstanding
Trading prices
What do I need to do?
Log in to Carta and go to Compliance > Financial Reporting. Run a new report (must be 1 year or less reporting period). In the drop down menu to download other reports, such as SBC Expense and Min Disclosure, there will be an option for Dilution.
Have questions? Contact 718@carta.com
]]>Soon, you will be able to access 8 new reporting templates under Capitalization > Reporting, which provide you with access to critical data points about your equity pool, company, securities, and stakeholders. You will be able to see exactly how your key option pool values are derived, view equity awards joined with Grant Reason and Employee ID, and even export a detailed list of stakeholders and their properties.
Why is this important?
We’ve been listening to every piece of feedback from you, and have heard the challenges that you face. The new reports address these challenges, providing visibility into how key pool values are derived, and giving you reporting access to over 60 key fields that were spread across multiple places, and in some cases, previously un-reportable.
Those 8 template reports are:
What do I need to do?
You should be on the lookout for an email from your CSM letting you know that these reports are now available for you. Once you get that email, you can go to Capitalization > Reporting, and you will see the following view, where the newly added reports will have a ‘New’ bubble next to them:
From there, you just need to export the report as usual!
Where can I learn more?
For more information on exporting reports, visit our support site. We will be adding additional information to the support site as reports are updated and improved.
]]>