What’s new?

We’re excited to announce the release of two new specializations:

• UX Design (within the Design job area)
• Logistics and Supply Chain (within the Operations 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. 

No other benchmarks have changed in this update.

How do I see benchmarks for the additional specializations?

You can view benchmarks for the new specializations by:

1. Visiting the Bands page and selecting “Design” or “Operations” under Area. Once the job area is selected, you can select either the UX Design or the Logistics and Supply Chain specialization by selecting the Specialization dropdown.

1. This will allow you to view salary/equity bands for levels 1 - 8 for either specialization.  
   
   
2. The above process can be followed for each of the new specializations.

How do benchmarks for the additional specializations affect the Employee Scorecard?

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.

How do I update my benchmark version to use new specializations?

You can update your compensation plan to use the latest benchmark versions either by:

1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
   

1. 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 new?

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.

What’s new?

Private companies on Carta can now run Dilution reports. The Dilution report will include: 

• Incremental Shares
• Weighted Average Shares Outstanding
• Average Trading Prices

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

  • Simple average
  • Weighted average

• Trading prices

  • Simple average
  • Weighted average
• Incremental Shares
• Supporting tabs to help auditors tie out values

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 

What’s new?

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:

• Equity pool transaction ledger: A detailed view of shares available to issue from your equity pool. This new report includes a double-entry activity log for every transaction so you can see, line-by-line, exactly how available shares and other plan values  were derived.
• Common securities ledger: A ledger of all Common shares in Carta.
• Equity awards outstanding: A detailed view of all outstanding equity awards across all plans on Carta. 
• Equity plan granted: A ledger of all securities granted from the equity plan. 
• Options outstanding: A detailed view of all outstanding options across all plans on Carta. 
• Securities ledger: A ledger of all securities tracked on Carta. 
• Share registry:  Used by companies in many countries to create a share/equity register or register of holders.
• Stakeholder details: Full list of stakeholders and their properties.

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.

What's new?

GPs can now click on a specific investor's name within their Capital Activity Notice PDF to quickly view the details of that investor's notice.  

What’s valuable about this change?

Get the information you need, faster.

Save time by no longer having to scroll through pages of notices until you find the right LP. Easily search and select the LP to be automatically directed to that LPs notice.

What do I need to do?

1. Log into your Carta account and navigate to the Activity tab
2. Click into the details of an active capital call in your task list
3. Scroll down to Notification to Investors and select the Document Outline icon
4. Then, select the LP to review their capital call notice

What's new?

What’s valuable about this change?

Distributions made smoother. Request, view, and approve your distributions in the same place you manage your fund.

What do I need to do?

1. Login to your Carta account, select the entity, and navigate to the Capital activity tab
2. Click “Request distribution” and enter the amount of capital to be distributed
3. Enter distribution details including distribution notice, money transfer dates, and source of proceeds
4. Select “Continue”, review the distribution details, and Submit

Note: For same day processing, the request must be made before 3:00pm EST.

How do I learn more or get help?

Visit this support article for a more detailed view into distributions.

What’s new?

With Carta's new Deal pro forma tool you can generate an accurate deal-ready pro forma model with iterative calculations in just a few minutes. Users will be able to create a deal-ready pro forma that takes into account all the nuances of the model and handles the complicated conversion math for SAFEs and Notes. 

What's important or valuable about this?

Carta automates the process of building a pro forma so that it can be completed on the Carta platform within minutes. Carta Deal Proforma eliminates unnecessary iterative and redundant work. With the new tool you can increase the capacity for companies to be more versatile with their modeling as it’s easy to make incremental changes instead of starting from scratch. Starting today you can:

• Build a deal pro forma in a few minutes instead of hours and view results instantly
• Share or view on Carta or exported as an excel file.
• Use your latest cap table information for real-time changes to your pro forma.

What do I need to do?

Carta Deal Pro Forma will be available to all Carta customers in their Scenario Modeling tab.

How does it work?

Under Fundraising > Scenario Modeling > Pro forma tab,  you can see create a pro forma and generate a full view of your next round and export a deal-ready pro forma cap table. 

You can:

• Add new round terms
• Add new money investors for this round, including consideration for investors with pro rate. 
• Add convertibles converting in this new round or uncheck convertibles to be excluded from this pro forma.
• Define the share classes for the financing
• Include Investor Pro Rata Rights, including investors with convertible Pro Rata Rights
• Add advanced terms such as conversion methods, anticipated option pool increase, specification of authorized shares and common stock buffers
• View and share in app or export to excel

Have a question or feedback? Visit our support site.

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What's new?

A new column in the Document Library shows you if a document has been shared or not and who it has been shared with.

What's important or valuable about this change?

These enhancements will help you streamline document sharing workflows, such as sharing a large volume of Form K-1s with interest holders ahead of tax season. Easily keep track of which documents have been shared with interest holders and which ones have not. You can also filter the Document Library by sharing status which can help you quickly see which documents still need to be shared.

What do I need to do?

See the new ‘Shared with’ column in the Documents Library. You can filter down to ‘Shared documents’ or ‘Not shared documents’ by clicking on the filtering menu in the Documents Library search bar.

How do I learn more or get help?

For more information on the Documents Library and distributing Form K-1s, visit our support site.

What's new?

When you transfer an interest in Carta, you can now see all the information related to the transaction in the event details.

What's important or valuable about this change?

Gain complete visibility into every transfer transaction and see clearly in the event details if an interest was issued from a transfer as opposed to a new issuance on the cap table.

Track changes to the interest during the transaction and the issuance details, including where the interest was transferred from, to who, quantity, price, and total amount paid for the transfer. 

What do I need to do?

You can see the details of each transfer transaction in the event details:

How do I learn more or get help?

For more information on transferring interests, visit our support site.

What's new?

You can now get a comprehensive view of interest holders, including demographic information, interests issued to them, and documents shared with them. Additionally, you can now track employee IDs in Carta. 

What's important or valuable about this change?

Enhancements to the interest holder details provide a single source of truth in Carta for who each interest holder is, what interests they hold, and which documents have been shared with them. 

When you record an Employee  ID with each interest holder in Carta, you can use it as a unique identifier to streamline reporting across Carta and other systems such as payroll. 

What do I need to do?

To get a comprehensive view of an interest holder you can click on any row of the interest holder ledger. This will open a page with various tabs to view the holder details, view all interests that have been issued to them, and view all documents that have been shared with them. 

To track and report on employee IDs, edit an interest holder to add their employee ID. Shortly, these employee IDs will also be pulled into our excel based reporting. 

View the interest holder demographics in the Summary tab of interest holder details.

View the interests issued to this holder in the Holdings tab.

View the documents associated with these interests and shared with this holder in the Documents tab.

How do I learn more or get help?

For more information, visit our support site.