If you are an LP, you’ve felt the pain of filling out subscription documents. You go through the same long investor questionnaire with the same questions for every fund investment you make. With Carta subscription documents, now you don’t have to. 

What’s New 

Limited Partners who have already completed a subscription document on Carta can now re-use their information for future investments. They can add their subscription information in just a few clicks.

How it works

1. Limited Partners select the portfolio for the entity they are investing through

2. The form is pre-filled with information from their previous subscription. Any questions that are specific to this investment are highlighted for the Limited Partner to answer.

3. Limited partners review and confirm their information is correct.

Check out our Q1 product webinar recap blog post to see how simple the closings process will be.

Timing: Rolled out to Limited Partners on February 24, 2021

Audience: Limited Partners, General Partners

To provide safe and easy access to our mobile users, we are introducing biometrics login on the Carta iOS and Android apps.

This update will make it easy for users to log in to the Carta app through the use of Touch ID or Face ID on supported iOS devices, and Facial or Fingerprint recognition on supported Android devices.

Note: Only biometrics login for a single account is supported at this time.

Stakeholders can now view details about their public RSU settlements in the RSU settlement history view.

Who this affects:

Public company stakeholders with RSU awards

What’s new: 

From the portfolio view, stakeholders can navigate to each individual RSU grant and view a comprehensive settlement history:

The settlement history shows the settlement type, shares sold or withheld for taxes, and the net shares that the stakeholder receives. 

Stakeholders can download a Settlement details report capturing the breakdown of their taxes related to the RSU settlement, asl well as shares sold or withheld for taxes:

Carta now features a Pay Cash settlement type for public company RSUs settlements. Administrators can set up a settlement event for participants paying cash to cover their tax obligations for an RSU release.

Who this affects:

Public company administrators

What's new:

When entering in a public RSU settlement through Transactions: RSU settlements, administrators can now select Pay cash as a settlement type.

The Pay Cash settlement type calculates taxes, but does not reduce the gross shares vesting by the shares sold or withheld to cover taxes. Carta captures the ordinary income and taxes to be withheld in its reports as well as in the settlement flow.

Stakeholders will see their total gross quantity of shares in their portfolio post settlement, along with an indication that they paid cash to cover taxes.

Carta Fund Administration clients can now access both company investments and fund overview information on the Carta iOS and Android apps. This will help investors get information on the go.

Who this affects

Fund administration clients 

What’s new

Fund administration clients can now view both company investments and an overview of their fund entities on Carta.  

• General partners can view and search through the company investments
• The new fund overview page provides a summary into the fund investments and also the top five investments, which can be filtered based on Gross IRR, Cost, Value, Gain/Loss, and Multiple.

At Carta, we want to make complex things simple and easy to understand. To that end, we’re excited to release Tax Documents on Mobile.

This update will allow Carta users to access Tax Forms 3921 and 1099-B from the dedicated Tax Documents section within their Account.

To access Tax Documents, users can navigate to their account and select Tax Documents under portfolio information. If a user has multiple portfolios, they can choose a desired portfolio to view the documents.

Users will now be able to view, download and share tax documents from the mobile app.

Net exercises can now be entered as off platform transactions for public companies. This functionality leverages Carta’s tax calculations to determine the shares to withhold for option cost and taxes, as well as the net shares that the stakeholder receives from the transaction.

Who this affects:

Public company administrators

Navigate to Securities > Equity awards. To the right of the option grant’s row, click the V drop down and Select Off System Transaction. Select Net Exercise as the Exercise Type:

Enter the transaction date and shares to be net exercised:

Carta will then use the stakeholder’s address(es), relationship history, and year to date compensation information to calculate taxes and the number of shares to withhold to cover the total cost of the exercise

Administrators can review and adjust taxes related to the exercise after Carta initially calculates them. Changes to tax amounts will update the quantity of shares withheld to cover option cost and taxes.

After reviewing and saving,  the transaction will appear on reports as a net exercise. Both the exercise details and exercised and settled reports will reflect the shares withheld for taxes and net shares that the stakeholder receives.

Resources:

[Support Article] Record Net Exercise Transactions- Public Company Admins

The Health Checks Dashboard allows you to identify, understand, and take action to fix data inconsistencies in your Carta account. It is currently rolling out to select customers under “Early Access”.

This article focuses on the following topics

• Who can access the dashboard
• Where to access the dashboard
• How to navigate the dashboard
• How to fix a health check error
• FAQs

Who can access the dashboard

You must be a Company’s Legal Administrator, Company Editor, or Company Viewer to see the dashboard. Note that Company Viewers do not have the ability to edit company data, and will only have view-access to the dashboard. Learn more about permissions.

Where to access the dashboard

via the Company Summary Page
via the Company menu dropdown link

How to navigate the dashboard

Tags

Tags help you navigate to Health Checks related to a certain topic. If you select more than one tag, checks that apply to any of the tags will be displayed below.

Tabs

Required: Shows Health Checks that require attention as soon as possible and may post a transaction risk if not addressed. These reflect instances where bad data can propagate to other nodes in the Carta network is not address promptly

Recommended: Shows Health Checks that can improve the Carta experience and ensure different Carta experiences reflect consistent values.

Dismissed: Shows Health Checks that have been dismissed by users. Certain Health Checks will flag issues that may be expected discrepancies, from a company perspective. These will be dismissable

Health Check Cards

Each card will contain information on why a fix is important and instructions on where to fix the issue. Tooltips to the right of the title, contain guides to support articles and more details on how an issue can be addressed.

Fixing a Health Check Error

There are two types of Health Checks- ones that can be fixed by a company user and ones that require a Carta team member to make the underlying changes.

If a Health Check error has a modify action, you will be able to address the issues on your own.

For other health checks, we may recommend that you reach out to Carta Support to process the data change on your behalf.

FAQs

1. Will Carta continue to work, if I don’t address Health Check errors?

   1. Yes, Carta will continue to work, but you may see discrepancies in Carta tools and reports. We suggest that you address required issues as soon as you can to ensure Carta works smoothly.

2. Can Carta fix the data issues for me automatically?

   1. We take your data integrity very seriously. As such, we want to ensure all changes to data are reviewed and verified by an account owner. In some circumstances, we’ve improved the product to capture more data and need your help populating the new data fields.

3. Why is it important for me to address Health Check errors?

   1. All Carta tools depend on clean and accurate data to work correctly. For example, an expense report requires vesting schedules and stakeholder relationships to be filled out correctly. 

Company administrators can now use the stakeholder address history feature to track multiple, effectively-dated addresses per stakeholder as they move from location to location. Additionally, we've also improved the experience around managing and viewing addresses in Carta for stakeholders based outside of the United States.

Who this affects:

Company administrators responsible for managing stakeholder information in Carta

What’s new:

• Multiple, effectively-dated addresses per stakeholder. Companies can now reflect a timeline or history of addresses for a stakeholder as they move from location to location
• Extra structure for non-US addresses. For stakeholders based outside of the US, companies can now track and view stakeholder address information at the country, country region (i.e. state/province/county/etc.), and city level
• Integration with Carta's tax system. When an option exercise occurs, Carta will estimate tax withholding amounts using multiple tax jurisdictions if the stakeholder lived in more than one location during the vesting period

Track stakeholder address history as they move from location to location:

Old form for adding a non-US stakeholder address:

New form for adding a non-US stakeholder address:

Timing:

All companies will have access to these new features by Wednesday, February 3rd

Resources:

• [Support article] Manage stakeholder addresses in Carta
• [Support article] Manage employee tax withholding in Carta
• [Support article] Country and country regions in Carta

For company administrators using the new "Tax rules" page in Carta, they can now choose to enable the tax mobility feature for their company. If tax mobility is turned on, Carta will use a stakeholder's address history when estimating taxes for withholding purposes.

Who this affects:

Company administrators with access to the "Tax rules" page in Carta

What’s new:

• Enable tax mobility for more accurate tax withholding estimates. Companies can turn the tax mobility feature on under Compliance > Tax rules. If tax mobility is enabled, Carta will look at a stakeholder's full address history when estimating applicable taxes for a withholding event (e.g. NSO option exercise, RSU settlement).

If you don't already have access to the "Tax rules" page in Carta, reach out to your account manager to request access.

Navigate to Compliance > Tax rules to find the tax mobility feature:

Timing:

All companies with access to the "Tax rules" page will have access to the tax mobility feature by Wednesday, February 3rd

Resources:

• [Support article] Manage employee tax withholding in Carta
• [Support article] Manage stakeholder addresses in Carta