Starting today, Carta is enabling you to easily determine how much equity to grant employees and when to grant it via new tools such as the Hiring Planner, Refresh Grant Planner, and Equity Pool Forecast.

Only Carta can help you: 

• Minimize manual work using a single platform
• Take a proactive approach to thinking about impacts of equity grants on your equity pool
• Conduct accurate forecasting using integrated benchmarks from Carta Total Compensation

What’s new?

With our new suite of Employee management tools, administrators have access to four new features:

1. Manage Employees hub: See the tools, required steps, and resources to help you hire, manage and retain your team.
2. Hiring Planner: Add potential new hires to see recommended equity and cash compensation based on market data, and export plans to share with your team and investors.
3. Refresh Grant Planner: See which employees are completing vesting soon, and plan out refresh grants to tenured employees to help retain top performers
4. Equity Pool Forecast: Visualize your equity grants, hiring, and retention initiatives and their impact on your equity pool over time.

Who is this available for?

All Corporation founders and administrators who can view their company’s cap table.

How do I use it?

You can access these flows by going to your Carta account, and going to Manage Employees in the side navigation. From there, you can easily access all of the additional tools.

View a demo walkthrough of this feature.

Anything else I need to know? 

If there is anything you wish to see here, use the feedback form that will show up when you first visit the Manage employees page. If you have already responded and have additional feedback, or cannot find the form, you can reach out to your CSM or provide feedback via Carta Community.

What’s new?

We’ve improved our management fees to ensure you receive accurate offset calculations and experience a smooth approval process, every quarter.

What’s important about this change?

When approving management fees, you can now remain confident offsets are accurately accounted for with improvements to our offsets calculator. This means offsets will be properly allocated to partners in accordance with your LPA.

Plus, spend less time reviewing management fees and approve now, but transfer later with our new scheduling feature. 

How does it work?

You’ll receive an email and notification through your Activity tab that your fees are ready for review, this time 10 days prior to the new quarter.

You’ll then review your management fee calculations. Not only did we simplify the view of your total fees due, but we’ve made it easier for you to understand previously allocated fees, fee savings, and reductions due to offsets or waivers.

After you approve your fees, you now have the ability to customize the transfer amount, in this case I selected the full amount, and date the fees are transferred with our new scheduling feature. Because we’re sending you your fees  for review 10 days prior to the new quarter, you can review and approve then, but select to transfer on July 1.
 

Next, select the pay from and pay to accounts, and approve the transfer. If taking advantage of automated money movement to transfer your fee, check the box to authorize the money movement.

How do I learn more or get help?

To learn more about Carta’s management fees feature, reach out to your Account Director or if you’re new to Carta, schedule a demo today.

What’s new?

We’ve redesigned our capital call experience to introduce self-serve capabilities, like direct edits and self-release, allowing you to get your time sensitive capital calls out even faster.

But we didn’t just build for speed, we know the importance of an error-free capital call for both you and your investors, so we’ve introduced automatic health checks and pulled in critical details from your LPA to ensure accuracy in every detail.

What’s important about this change?

Gone are the days of waiting on your fund admin to review an urgent capital call, and the chance of human error. Now, you can remain confident you’re sending out an accurate capital call to investors, no matter the timeline.

How does it work?

Navigate to your Activity tab, select Call Capital, then select the type of capital call. We’ve introduced two additional options, “bring investors in line”, which means you want all of your investors to be at an equal percent of their commitments, and a “custom” option, if none of the options listed work for you.

If calling capital Pro rata, select the investors to call, enter your amount, and the purpose of the capital call. Your called capital calculations will be updated in real-time in the summary module as you modify the page.

As a last update to ensure your time sensitive capital calls get out as quickly as possible, we now give you the ability to send this capital call without waiting for your fund admin to review.

If everything looks correct, you can send to investors now, schedule for later, or still send to our team for a custom request or second review. If any of our automatic health checks are failing, we’ll require a fund admin review before you’re able to release.

How do I learn more or get help?

To learn more about Carta’s capital calls, reach out to your Account Director or if you’re new to Carta, schedule a demo today.

What’s new?

We’ve enhanced our fund formations so fund managers can now access a self-serve, guided experience, all in the same platform they manage their funds. 

What’s important about this change?

Whether you’re an emerging manager forming a fund for the first time, or an established GP looking to scale your firm, Carta makes the fund formation process quick and easy with an in-app, step-by-step experience. 

You’ll be able to understand exactly what step in the formation process you’re on, what information you need to provide, and how many steps to go. 

How does it work?

You’ll be guided through the formation process step-by-step, starting with the basics like adding members to your fund and providing details like the name of your entities. 

After you enter your fund details, we’ll form your entities with Delaware and obtain your EIN, removing days of manual work by automating this process.

Next, you’ll move on to more complex items like fund financials and ownership stakes. You’ll get to define fund terms for legal agreements like closings and waterfalls, and set your management fees. If you’re new to venture, we’ll provide you guidance and best practices along the way.

The last step in structuring your fund is signing final documents like your LPA and Operating Agreement. All of the information you entered in the steps prior to this is what populates these documents here.

You can easily track who’s been invited to sign these documents and their progress.

Once all steps are complete and documents are signed, you can then get ready to invite investors to close into your fund. Carta’s data room and closings tool makes the closings experience smoother for both you and your investors.

How do I learn more or get help?

To learn more about Carta’s Fund Formation, reach out to your Account Director or if you’re new to Carta, schedule a demo today. 

What's new?

Fund managers can now track the status of active capital calls, directly from their Carta Carry app.

What’s important about this change?

Gone are the days of following up with your fund admin to see the status of a capital call or confirm which investors are yet to pay.

Now, you can easily track the status of active capital calls, including a view into the progress of your investors commitments, all from your phone.

How does it work?

After your capital call request has been submitted, you’ll be able to view the progress from both your home screen and your new Capital Calls tab. You can see an overview of the amount pending, pending investors, and due date.

For a more detailed view, you can click into the individual capital call  to view investor details. Easily filter investors by which have paid, which have partially paid, and which haven’t paid. You can also view which investors have not yet viewed the capital call notice, so you know who to follow up with.

Don’t have Carta Carry?

Download it on iOS or Android today.

What's new?

Fund managers can now view investment performance for each of their portfolio companies, wherever they are.

What’s important about this change?

Whether you’re at your desk or on-the-go, you can quickly view a snapshot of your investments, or click into an individual investment for a more detailed view.

How does it work?

Click into the Investments tab, then view an overview of investments across your portfolio with metrics like cost, gain / loss, and what your ownership percentage is. For a more detailed view, click into an individual  investment to see additional metrics like holdings value, gross IRR, and gross multiple. 

Don’t have Carta Carry?

Download it on iOS or Android today.

We are making it easier for companies to keep cap tables up to date after a new round of investment.

What’s new?

Our new Share Class Manager can extract information from Incorporation Documents and Stock Purchase Agreements, saving company administrators time when issuing investor shares after fundraising.

Who is this available for? 

All company administrators can upload and extract data from Incorporation Documents. Administrators from companies reflecting their first priced round can upload and extract data from Preferred Round Stock Purchase Agreements.

Main Value Proposition

The new Share Class Manager powered by document extraction saves you time, money, and makes sure your cap table data matches the legal documents after a new round.

How do I use it?

1. Navigate to Securities, then Manage Share Classes
   
   
   
   
2. Click "Update Share Classes", then select "Add new filing date"
   
   
   
   
   
3. Upload documents, and wait on screen for the extraction
   
   
   
   
   
4. Review data and save

Anything else I need to know? 

Any company can upload incorporation documents and have new share class data automatically ready for review, but only companies on their first priced round can upload Purchase Agreements. 

Carta’s Financial Reporting  tools automatically generate the expense and minimum disclosure reports that auditors need so that you can easily comply with US GAAP and IFRS 2 accounting standards.

Early-stage companies now have a Financial Reporting product designed just for them. Standard Financial Reporting includes automatic expense tracking for equity spending and an audit package with all the supporting evidence and documentation auditors need for stock-based compensation (SBC) expense reporting. 

Features included:

• Automatic 409A valuations data ingestion

  • FMVs and Peers
• Annual reporting
• Audit package including SBC expense report, Minimum Disclosure report, and an audit guide detailing the assumptions we make and formulas we use
• Premier audit support
• Stock split support

Who is this available for?

Standard Financial Reporting is available to all Carta cap table customers, but specifically designed for early-stage companies preparing for their first few audits

Main Value Proposition

Automatically track your equity spending with Carta’s Standard Financial Reporting. Key benefits include:

1. Accurate, automated expense tracking: Tracks stock-based compensation expense, ensuring all cap table transactions are accounted for.
2. Time saved: Get your stock-based compensation (SBC) report, minimum disclosure report, and audit guide in 5-10 minutes, saving 1-2 weeks of manual calculations.
3. Compliance: Ensures compliance with the Financial Accounting Standards Board (FASB) requirements for booking SBC expense upon first issuance.
4. Historical expense calculation: Provides a one-time adjustment for historical expenses in your financial books.
5. Simplified auditing: Download an audit package with all necessary documentation, ready to send to your auditor.

In just a few clicks, Carta’s tool manages your stock-based compensation expenses, making your audit process seamless and efficient.

How do I use it?

• Go to Compliance > Financial Reporting
• Before getting started, make sure your cap table is up-to-date with all historical transactions including issuances, terminations, and cancellations.
• Click “Get started” and enter your financial statement end date. Then click “Generate expense.”
• Wait a few minutes while we do the complex accounting for you.
• Once expense is done generating, book your inception expense as a one-time adjustment in your financial books.
• Book your first FY expense in your financial book.
• When it’s time for your audit, download your audit package and send it to your auditor.
• If there have been any backdated adjustments made to your cap table, you can recalculate your expense before downloading your audit package for the most updated value.

Anything else I need to know?

All questions can be answered through our Financial Reporting support team, contact them via email 718@carta.com

Financial Reporting is making an improvement to the way we pull in cap table data, achieving data consistency with the cap table products for vesting schedule tranche values.

What's new?

Previously, Financial Reporting used our own First-In First-Out (FIFO) allocation method to assign exercised quantities to ISO/NSO security type tranches. This method did not always match the cap table, as the logic slightly differed. In order to provide consistent data between cap table products, such as equity reporting, equity awards ledger, equity award details, and Financial Reporting, the Securities team created API services, specifically Vesting and Options for award and tranche level quantities. With Financial Reporting’s integration of the Vesting and Options API service, the tranche values displayed in Financial Reporting reports will be improved to match other Carta products, achieving data consistency. 

Who is this available for?

All Financial Reporting customers will benefit from this new method Financial Reporting will be using to achieve data consistency with cap table products and equity reporting. More specifically, companies with ISO/NSO security types will have matching tranche quantity allocations with their cap table!

Main Value Proposition

Fully rely on Financial Reporting for your equity roll forwards! With a few clicks, Financial Reporting will provide accurate equity roll forwards and stock-based compensation expense for your financial statements and audits. Carta’s products talk to one another, which means you can easily rely on Financial Reporting to have accurate tranche quantities that match our other products.

How do I use it

No action required on the customer side. Customers will just continue to generate their financial reporting periods and the reports will correct themselves without disrupting the opening and closing balance of prior reporting periods. 

Anything else I need to know?

If you have any questions or want to talk to an expert about this new change, reach out to 718@carta.com

What's new?

Get your board's approval while creating SAFEs on Carta with the new SAFEs board consent feature. Our customers can be rest assured their SAFE financings are governed properly. If you've created SAFEs on Carta before this release don't worry, our feature allows for ratifications of previously issued SAFEs so you're audit ready. 

Who's eligible?

All companies can fundraise through SAFEs and leverage Carta's board consent feature! Users with Full Access permissions will be able to see the consent creation step. 

How can I access it?

If this is your first time creating a SAFE, Carta can assist in efficiently creating a board consent using the information provided. You can skip this step and create one later through the Board Consent tool or select Yes and you will be walked through the process. 

Carta will remind you if you ever raise more money through SAFEs than your board had approved. If this ever happens, we'll prompt you the next time you create a SAFE or you can ratify previously issued SAFEs (with an option to adjust your amount if you intend to raise more later)