What’s new?

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:

• All equity plans in a single report: the updated version includes all of your equity plans within a single report, allowing for easier transactional reconciliation.
• Dedicated Options and RSUs tabs: the improved version provides separate tabs for option exercises and RSU settlements, condensing and simplifying the tabs to show the fields you care about.
• Early exercise: the new report displays which exercises occurred as early exercises, before the underlying shares had vested.
• Payroll ID: all transactions now have their associated stakeholder payroll ID included to improve payroll reconciliation, assuming the ID was input in the platform.
• RSU withhold-to-cover: the report now accounts for the settlements run using Carta's bulk RSU settlement tool, providing information on quantity withheld and quantity released.
• Two FMV fields: to allow for easier reconciliation of FMV at exercise, the Exercised and Settled report now displays two FMV fields -- the FMV as shown to the stakeholder at the time they requested the exercise, and the FMV from the 409A page covering that exercise period.
• Country and state: improve internal controls, tax reporting, and review in case of holders from several different countries/states.

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.

What’s new?

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:

• Pre-money valuation caps
• SAFE term distribution
• Discounts
• Number of investors per round

Getting started:

1. Navigate to the SAFE Financings page under the Fundraising tab
2. Click on “Go to SAFE terms calculator”

1. Choose your terms. You do not need to provide all the terms.

1. Click on calculate, you can now see insights specific to your SAFE round

What’s new?

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. 

How does it work?

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.

What do I need to do?

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.

How do I learn more or get help?

Customers can learn more about automatic updates here.

What's new?

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.

Why is this important?

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.

Where can I learn more?

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).

What's new?

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?

1. Log into your Carta account and click Initiate a vendor payment in your Quick Actions list
2. Upload the invoice and indicate which bank account to make the payment from
3. Submit the expense and get an instant progress tracker for your wires

How do I learn more or get help?

Get in touch with your Relationship Manager or talk to one of our representatives today.

What’s new?

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. 

Who is this available for? 

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.

How does it work? 

• Log in to Carta, and navigate to Compliance & Tax > Financial Reporting. 
• Create a new report. The date range for the report should include the date when a performance award was granted.  
• Once an award has met all performance conditions, there will be a true-up of the expense and any values will be allocated accurately as per FASB US GAAP guidance.
• If the performance conditions have not been met, the expense will be reported as 0 per US GAAP guidance.

What’s an event-based performance condition? 

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. 

How does Carta calculate the fair value assumptions? 

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. 

Can I create reports using both US GAAP and IFRS scenarios?  

Not at this time. Companies can only expense awards with event-based performance conditions in US GAAP. 

Can I attach event-based performance conditions to a specific vest date? 

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.  

Where do I go if I have more questions about financial reporting? 

If you have more questions about our Financial Reporting product, please contact 718@carta.com. 

What's new?

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.

What do I need to do?

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:

How do I learn more or get help?

We've created a few help articles with detailed information about FRV and how this value differs from FMV and appears in Carta:

• Separate Reports for Fair Market Value and Financial Reporting Value
• 409A and ASC 718 Compliance: Carta’s Financial Reporting Value (FRV)
• Financial Reporting (V3): Carta’s Financial Reporting Value (FRV)

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.  

Today we’re making design improvements to the RSU Modal to make it easier for holders to understand the value of their equity. 

What is changing? 

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.

Changes to the Details tab of the RSU Modal

RSU holders will see the following information on the RSU details page: 

1. Original quantity / Issued: Total amount of RSUs granted on the issue date
2. Released for settlement: The number of vested units that have been part of a settlement event
3. Delivered: The number of shares ultimately delivered to the holder as a result of converting the RSU, after any shares withheld by the issuer as payment for the holder's tax obligation
4. Withheld at settlement: The number of shares that have been withheld to cover taxes at settlement
5. Partially-vested amount: eligible for settlement when performance is hit, or the the total number of shares time vested, and available for settlement
6. Remainder: Resulting number of shares from original quantity, after subtracting settled and withhold amounts 

The bottom of the details tab will now include an employee education modal, which will be used to surface important education about their RSUs. 

Changes to the Vesting Schedules tab of the RSU Modal 

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):

1. Double trigger RSU (Based on time and an additional condition)
2. Double Trigger RSU (Based on milestones and an additional condition)
3. Single Trigger RSU (Based on time)
4. Single Trigger RSU (Based on milestones)
5. RSU has been terminated or expired

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.

What’s new? 

This release improves the workflow for matching employees with stakeholders on Carta. Employees with the same name and email as the stakeholder will automatically match, saving their employee ID and thereby linking the stakeholder with the employee record. The improved workflow guides you through reviewing all other employee matches. 

How does it work? 

For the reviewed matches, you can now ignore, to be reminded next time, or to choose a different stakeholder. These decisions will be saved and will not need to be rematched when running the employee matching workflow. You can now review all matches and update the decisions later. 

What do I need to do? 

To get started, you will need to connect your external data to Carta either through connecting your HRIS system, uploading a spreadsheet, or pasting the information into Carta directly.

With your external data connected, Carta will attempt to automatically match your employees. From there you review suggested matches, deciding to approve the suggestion, ignore it, remind me later, or manually choosing a different person.

If there are any employees from external data that don’t match at all to Carta stakeholders, you can choose to ignore them or manually choose a person to match.

The workflow is then completed and all matches can be reviewed.

How do I learn more?

For more information on Employee Matching, please read our support article.

What’s new?

The Share Class Manager page will be updated this coming Monday, February 6th to make it easier to navigate, and provide a consistent experience when you are updating AOI terms.

We no longer display a "Link AOI" button at the top of the page. The new flow is designed to be simple and intuitive, with the "Manage Share Class" button giving you access to update existing share classes, add new share classes, and link Articles of Incorporation.

What do I need to do?

Navigate to Capitalization > Manage share classes. Under Manage share classes, there will be three options:

• Create new share class
• Edit existing share classes
• Add historical AOIs

Where can I learn more?

Visit the Share Class Manager support article or contact us via the In-App Help Center.