What's new?

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.

What's important or valuable about this change?

The new waterfall modeling engine allows you to build and run any waterfall model in minutes.

• Run even the most complex models with a bespoke modeling engine that is encoded with the unique distribution rules from your operating agreement
• Increase speed and accuracy by automating waterfall modeling with an engine that is always connected to your most up-to-date cap table in Carta
• Model potential scenarios and estimate equity values with a detailed summary of proceeds for each interest holder

What do I need to do?

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:

1. Navigate to the Valuations tab and click on Waterfall modeling.

1. On the Waterfall modeling page, input the valuation date, the total equity value, and choose your vesting treatment to run the waterfall.

1. You can view your distribution rules by clicking on the Distribution rules button in the top right.

1. 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:

   1. View proceeds by Interest Holder or Interest Type
   2. View overall proceeds or filter by proceeds type(s)
   3. Filter by interest holder(s)
   4. Access interest details and documents
   5. View the breakpoint summary
   6. Export the analysis to Excel

How do I learn more or get help?

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.