Description
The interest issuance flow got a major upgrade. Now, users are able to create one or many draft issuance sets and can then work on populating the issuance spreadsheet on their own time. As partial or full data is entered, that can be saved to prevent data loss & rework. Once the issuance set is populated and reviewed it can be issued to the cap table. In addition to saving data, holder data is now entered on the issuance spreadsheet to further streamline this process. To get started head to Cap table > Draft interests.

What’s new?
All Waterfall customers now have access to a new toggle that allows the modeling of allocations under the assumption that the cap table is fully diluted, i.e. all reserved units in an incentive pool are allocated. 

What do I need to do?

This feature is automatically enabled for all existing waterfall customers. When running a waterfall, click on “Customize advanced settings” to allocate all of the units in an authorized pool. If you’d like to try our waterfall you can reach out to your account manager or schedule a demo here.

What’s new?

We're introducing the latest addition to our platform: the beta release of Carta Distributions. Our team has been hard at work, dedicated to simplifying the distributions process and providing a seamless experience for our users. With this release, we're transforming what was once a multi-step process into a matter of clicks. Say goodbye to cumbersome inputs and hello to streamlined efficiency.

With Carta Distributions, you can:

• Seamlessly connect to your cap table and customized distribution rules
• Automate calculations to determine holder payouts
• Integrate distributions with waterfall modeling 
• Direct holders to a dashboard that tracks their invested capital and any preferred returns that have been paid out to date  

Why it matters:

Our customers have spoken, and we've listened. Distributions are a critical aspect of their financial operations, signaling value generation for stakeholders. However, the previous tool fell short of expectations. With Carta Distributions 2.0, we're addressing these pain points head-on, enhancing user experience and satisfaction with the tool.

What’s included?

The release focuses on revamping the user experience of the Distributions tool, with support for both pro-rata and custom distribution methods. We're committed to providing a seamless and intuitive interface, making it easier than ever for our users to manage distributions.

What do I need to do?

If you’re interested in trying out the new Carta Distributions, you can reach out to your account manager or schedule a demo here.

What's next?

In the coming weeks, we'll be rolling out additional features and enhancements. Users can expect to see improvements that allow them to visualize the impact of distributions on invested capital balances across the platform. Plus, we'll be introducing email notifications to keep users informed every step of the way.

What's new?

ASC 718 Financial Reporting now supports expensing profits interest units with vesting schedules that have non-market performance conditions. Additionally, all historically generated reports are now saved in a report ledger.

What's important or valuable about this change?

• Increase efficiency and accuracy of expensing profits interests with non-market performance conditions. In addition to expensing profits interests with time-based and event-based performance conditions, Admins can now also expense interests with non-market performance conditions. To help comply with  FASB guidance, admins can input into Carta the estimated recognition dates, estimated payout percentages, and recognition confidence in order to calculate expenses for profit interests with non-market performance conditions.
• Breeze through audits with a new report ledger. You can now maintain a complete record of every draft and finalized ASC 718 expense and disclosure report in a report ledger in Carta, allowing you to streamline annual audits. See and download any report whenever you need to.

What do I need to do?

See this release note for more information on how to pull ASC 718 expense and disclosure reports from Carta.

1. When pulling an expense and disclosure report for profits interests with non-market performance conditions, you will be prompted to edit the estimated recognition date, estimated payout percentage, and recognition confidence for each condition.

1. See and download every draft and finalized expense and disclosure report from the report ledger.

How do I learn more or get help?

If you need help with your Carta-generated financial reports,  contact our dedicated ASC 718 support team.

If you’re interested in automating ASC 718 financial reporting with Carta, please reach out to your CSM or request a demo from the Financial reporting tab inside Carta. ASC 718 financial reporting is available as an add-on to your current Carta subscription.

What's new?

Access to your Carta account can now be managed via SSO. 

What's important or valuable about this change?

You can now link your identity management provider to Carta to ensure access to Carta meets your company’s authentication security standards. Add, remove, and audit access to Carta in your identity management platform.

What do I need to do?

Talk to your CSM to add and enable Single Sign-On on your Carta account. Once you’ve added Carta to your identity management provider, you’ll be able to see who has access to Carta from the Team and security page and will need to use your identity management provider to add or remove users.

How do I learn more or get help?

For more information on Single Sign-On, please visit our support site.

What's new?

You can now see additional data in cap table reports, including the interest issue date and the documents that were shared with the interest holder.

What's important or valuable about this change?

When reporting on interests issued to holders, you can gain more insights with key information including the issue dates in cap table views and document names in the interest export, allowing you to increase auditability and ensure the correct documents have been shared with holders.

What do I need to do?

1. Using the configuration menu in cap table views, select the issue date field. This will add an issue date column to the cap table view and you’ll be able to export this data.

1. View and audit documents that were shared with holders in the interest ledger export

How do I learn more or get help?

For more information on cap table reports, please visit our support site.

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.

What's new?

Interest holders with multiple Carta portfolios can now choose the portfolio they want to accept their interests into.

What's important or valuable about this change?

Interest holders with more than one Carta portfolio, such as a family trust or a portfolio they share with their spouse, have the flexibility to accept their interests into the portfolio of their choice.

What do I need to do?

As an interest holder, when you’ve received a new interest, you can either choose an existing Carta portfolio you want to accept your interest into or create a new one.

How do I learn more or get help?

For more information, please visit our support site.

What's new?

We’ve released some usability improvements to Documents that provide Admins more flexibility to make updates to Data Rooms and Templates. 

What's important or valuable about this change?

When managing documents, Admins now have the flexibility to:

• Delete or rename data rooms, the folders inside a data room, and any files they’ve uploaded to the data rooms
• Delete or rename the interest agreement templates that are used for agreement execution, which allows you to simplify the end-to-end interest issuance workflow with fully executed legal agreements

What do I need to do?

1. On the Data Rooms page, navigate to the menu on the right side of the data room, folder, or document to rename or delete it.

1. On the Templates page, navigate to the menu on the right side of the interest agreement template to rename or delete it.

How do I learn more or get help?

For more information, please visit our support site.

What's new?

You can now pull automated expense and disclosure reports for profits interests with vesting schedules that include time-based conditions and event-based performance conditions.

What's important or valuable about this change?

ASC 718 reporting involves expensing each equity grant on your company’s income statements, which are subject to audits. With Carta, you can now simplify expense reporting for profits interests: 

• Eliminate errors and save time with automated expense reporting based on your up-to-date cap table in Carta
• Define reporting parameters and pull customized reports with a few clicks whenever you need them
• Confidently enter audits with accurate, transparent, and defensible expense reports every single time

What do I need to do?

ASC 718 financial reporting is available as an add-on to your current Carta subscription. Please reach out to your CSM to learn more and request a demo.

If you currently have ASC 718 financial reporting enabled on your Carta account, navigate to the Financial reporting tab to generate your reports.

1. Manage any exclusions (to control which interests are included in financial reports) and provide the ASC 718 fair value for each interest. Once you define these reporting parameters, they're saved so you can pull consistent reports every time.
   
2. Input the report start and end dates to run the report.
   
3. Download the expense and disclosure reports.
   

How do I learn more or get help?

If you need help with your Carta-generated financial reports, contact our dedicated ASC 718 support team.

If you’re interested in automating ASC 718 financial reporting with Carta, please reach out to your CSM to learn more and request a demo.