What's new?

To improve reporting related to ISO disqualification dates for holders of ISO option grants that were terminated, we have enhanced the logic used in Carta’s equity reporting suite.

Now an ISO grant will only show as disqualified in the reports if it reaches the statutory 3 month period following termination (or, in the case of a termination due to permanent and total disability or death, one year after the employee’s termination date). Users that require that an ISO grant disqualifies before these dates can enter a manual disqualification date via the modify workflow.

Carta's exercise flow already includes the disqualification logic above. This update affects only reporting. 

Why are we changing this?

Previously, there was a mismatch between the disqualification logic in Carta’s exercise flows and in the security modal versus in certain Carta reports in regards to the disqualification status for terminated ISOs. For example, if a stakeholder with an ISO grant with a PTEP of 1 year was terminated by the company, the grant would be shown as ISO disqualified before the statutory 3 months had passed in certain Carta reports. However, if the holder exercised that grant through Carta’s exercise flow within the initial 3 months post termination, the grant type, the tax treatment of the grant displayed to the holder, and the resulting records would reflect the exercise of an ISO in the Exercised and Settled Report.

With this update, for the example above, up until the initial 3 months pass, the grant will not reflect ISO disqualification in Carta reports. It will reflect an ISO disqualification date in Carta reports only once the 3 months statutory period is over.

Where can I learn more?

For more information on Carta's equity reporting suite, refer to our dedicated support article.

We know navigating complex ASC 718 or IFRS reports is critical. 

In order to help make that process seamless, we’ve added new ways to connect with our experts directly from Carta’s Financial Reporting tool.

There are three ways to get support:

• Message Us: This is the recommended method for any question. This new form allows users to categorize their questions, which automatically routes the case to the correct team and improves response time. The form also includes the ability to add attachments, which can be used to send expense reports to Carta's Support Team
• Schedule a Video Call: Customers can now easily book a meeting with an analyst, which is recommended for complex topics like first-time setup or understanding report calculations.
• Online AI Support: For general questions, customers can still access 24/7 online AI support.

This support article offers the steps on how to find the new contact us modal for Financial Reporting.

We've made a huge upgrade to our LLC product to support Look-through Ownership reporting, eliminating the complexity of tracking multi-entity ownership structures. 

What's new?

Look-through Ownership allows you to easily look through intermediate entities on an LLC multi-entity cap table to understand a holder's true ownership in the operating company. 

For supported customers, you’ll find a new “Look-through Ownership” option in the cap table view dropdown. Selecting this option will display a completely new view into the owning entity and holding entity relationships across complex legal structures.

• Complete Look-Through Visibility: See true ownership percentages that cut through intermediate entities, such as holdcos, to clearly understand the parent holders of the operating company—giving you precise exposure calculations for strategic decisions.
• Interactive Ownership Mapping: Click through ownership percentages to explore the complete ownership chain with a new UI that highlights all ownership layers and directly maps owning entity to holding entity relationships.
• True-to-Legal Structure Representation: Maintain the actual legal structure of your portfolio company while gaining blended ownership insights, supporting accurate compliance reporting for KYC, taxes, and regulatory requirements.
• Automated Exposure Calculations: Eliminate manual Excel consolidation and reduce errors with automated ownership calculations that update in real-time as your structure changes.

What's important about this change?

While multi-entity structures create various efficiencies for portfolio companies and their investors, they also create reporting challenges. Previously, calculating ownership across a web of relationships required exporting data from multiple sources and manually combining it in Excel, an error-prone, time consuming approach that easily becomes unwieldy as structures grow more complex.

On Carta, look-through ownership calculations are now automatically generated within your cap table view, giving CFOs and investment teams immediate access to accurate exposure data for exit decisions, LP requests, and regulatory compliance.

How does it work?

• Contact your dedicated Account Director to schedule a call to enable Look-through Ownership for eligible portfolio companies
• Navigate to your LLC cap table and locate the new "Look-through Ownership" option in the cap table view dropdown menu
• Click on any ownership percentage to explore the full entity chain and ownership layers

With H.R. 1, the “One Big Beautiful Bill Act” (OBBB) now in effect, we’ve updated Carta’s Qualified Small Business Stock (QSBS) Attestation to help you and your shareholders track eligibility and take full advantage of the new benefits.

What’s new?

Support for shorter holding periods: for shares issued on or after July 4, 2025, Carta now tracks eligibility for a partial QSBS exclusion after three years (50%) and four years (75%), with full 100% exclusion available after 5 years.

Support for the new $75M asset cap: Carta automatically checks if newly issued shares qualify under the updated $75M aggregate gross asset limit—so you can confidently verify QSBS eligibility at the time of grant.

Expanded individual gain exclusion: Shareholder letters and eligibility summaries now reflect the increased $15M per-person gain exclusion, unlocking even greater potential tax savings.

Updated dashboard indicators: Carta dashboards and reports now show eligibility based on new QSBS rules and issuance windows. This makes it easier for companies and shareholders to understand their status at a glance.

Why is this valuable?

The new QSBS rules offer significant opportunities for tax savings—but only if companies can accurately track and prove eligibility. Carta’s updates simplify this process. By automating complex eligibility checks and updating shareholder documentation in real time, companies can:

• Maximize potential QSBS tax exclusions across new and existing grants
• Confidently communicate eligibility status to founders, employees, and investors
• Maintain audit-ready records with less manual effort

These upgrades ensure every eligible shareholder is in a position to receive the full benefits of the new law, with built-in transparency and peace of mind.

How do I access the updated attestation?

No action needed, these updates have already been applied to all active QSBS Attestations and portfolios holding QSBS-eligible shares. If you have questions or would like a walkthrough, reach out to your Customer Success team or visit our Help Center.

Anything else to know?

Our team is closely monitoring policy changes and will proactively revisit your company’s QSBS analysis to help you unlock new shareholder opportunities and ensure your audit records remain up to date.

What’s new?

All equity awards are now tracked via the Equity awards exceeds equity plan size health check.

When is the health check flagged?

The health check is triggered whenever an issuer has more shares issued from their equity plan than shares available at any given date. Each row in the health check indicates the dates when one or more equity award was issued and overdrew the equity plan.

To check which awards are triggering the health check navigate to Essentials > Run Reports, search for the Equity Plan Report, and review awards issued on the overdraw dates to identify contributing securities.

How can I fix the health check?

There are two ways to fix the health check:

1. Modify the security that triggered the health check to be so its issue date matches a time when the company has enough available shares in the equity plan.

2. Amend your equity plan to increase the number of shares available at the overdrawn dates. 

What’s new?

Partner-level ILPA notices are now available on Carta, making ILPA reporting faster, easier, and more reliable. With this update, you can generate, review, and distribute ILPA notices directly within Carta, at the same time as standard capital call and distribution notices.

What’s important about this change?

For firms, preparing ILPA-compliant notices for LPs is often an additional task alongside standard notices. It can require multiple software tools and manual efforts to book activity and prepare the outputs, adding time and complexity to a firm’s reporting workload.

On Carta, ILPA notices are now automatically generated and distributed at the same time as standard notices, streamlining the process for firms and ensuring all LPs receive them simultaneously.

How does it work?

1. Ask your Carta team to switch on ILPA reporting for your fund
2. Request a capital call or distribution following the standard workflow
3. Review the ILPA-formatted notices in the app alongside the standard notices
4. Once approved, the appropriate notices are distributed to your LPs

What’s new?

We have made two improvements to paybands to make setting and updating bands easier:

1. Reset bands - you can now reset paybands based on your current Compensation Plan or, after updating your Plan, reset them based on your updated compensation philosophy
2. Automatic calculations for minimums and maximums - when updating payband targets, the minimum and maximum of the band that you are editing will automatically update based on your paybands settings

How do I reset paybands?

1. Navigate to the Paybands page
2. In the upper right corner, click the “Reset paybands” button

After clicking Reset paybands you will be asked to confirm your choice. Once you confirm, all of your paybands will be reset based on your current Compensation Plan. 

Note that this cannot be undone once you confirm.

Questions?

If you have any questions or feedback about Custom Paybands, please reach out to your Customer Success Manager.

What’s new?

We have updated US geographic adjustments for all metro areas as well as international market adjustments and currency conversions. 

US geographic adjustments are generally stable versus 2024. In the largest metro areas where we have employee level data, pay levels have increased at a lower rate than our top labor markets resulting in some lower adjustments vs. last year. For international locations, salary and/or equity adjustments have changed by more than 10% in Poland and South Korea. We observed 5-10% changes in a number of other countries including China, Germany, France, and Japan. These changes are driven by market trends as well as increased sample size in many of these countries.

How do I update my benchmark version?

You can preview the new benchmarks (using updated geographic adjustments) on your Scorecard by navigating to the Benchmarks page and clicking on the "Preview benchmarks" bubble in the top left.

Here 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.

Questions?

If you have any questions about these new benchmarks, please reach out to your Customer Success Manager.

We’re excited to announce a major refresh of the Tactyc <> Carta investments integration that offers enhanced customization and greater control. With a redesigned integration review flow and an upgraded data sync powered by the Schedule of Investments (SOI), these updates make it easier than ever to build and maintain accurate historical performance cases in Tactyc.

What's New:

1. Enhanced Integration Review Flow: 

• Choose what to keep: Selectively retain investment events already in Tactyc, and decide which financing rounds to sync from Carta.
• Clear visibility: Carta-sourced data includes distinct branding and color-coding, giving you clarity on where your data comes from
• Full control: All synced data remains fully editable in Tactyc after import. You can also 

2. SOI Driven Integration (for Carta Fund Admin <> Tactyc customers):

• Improved accuracy: For any portfolio company with a cap table in Carta, we now anchor investment data directly from the Statement of Investments (SOI).
• Enriched context: SOI data is enhanced with Carta’s complete cap table information to ensure (1) accurate ownership calculations across events and (2) inclusion of non-participating rounds

How do I learn more?

Tactyc <> Carta Support Article 

Anything else I need to know?

Specific user and firm permissions are required for integration setup — learn more here. 

Coming Soon:

Non-Carta investments tracked on the Schedule of Investments will be available in Q4.

What's new?

We've enhanced Carta Closings to support sophisticated investors and streamline the fundraising process with multi-party collaboration. This major update transforms Closings from a single-user experience into a collaborative platform where multiple LP contacts can access and complete the subscription process simultaneously.

With multi-party, GPs can share access to multiple contacts, including themselves, and LPs can invite multiple contacts (e.g. wealth advisors, lawyers, colleagues, additional signatories) to help complete their subscription documents—all while maintaining complete visibility and control.

Why is this important?

For sophisticated investors, completing subscription documents often requires input from multiple parties—financial advisors, legal counsel, authorized signatories, and others. Previously, this coordination happened offline through countless emails and document sharing, creating friction and delays.

While individual investors can easily complete forms themselves, larger institutional investors and more sophisticated LPs typically require multiple collaborators to review, complete, and sign subscription documents.

Key benefits:

For General Partners:

• White-glove service: Pre-fill your LP’s subdocs while also being able to view and edit in-progress investor questionnaires to proactively assist your LPs through the subscription process
• Enhanced investor management: Add multiple contacts per investor and proactively designate signatories when sending invitations
• Broader visibility: Maintain a comprehensive view of all contacts associated with each LP in an updated investor ledger
• Multi-party data room access: All LP contacts can now access your Closings data room when invited

For Limited Partners:

• Flexible collaboration: Add team members, wealth advisors, joint subscribers or other stakeholders to help complete the sections of the questionnaire on your behalf
• Transparent access & permissions: Maintain visibility into who has access to the questionnaire and define account contact permissions for managing the investment in Carta.

How does it work?

1️⃣ GP Access to Assist

GPs can now add themselves as an additional contact to prefill LP information and also edit investor questionnaires while they're in progress, allowing them to provide timely assistance to LPs navigating the subscription process. LPs are notified that the GP has this visibility, ensuring transparency throughout.

2️⃣ Adding Multiple Collaborators

For GPs: When adding a prospective investor, you can now include multiple contacts with their names, email addresses, and signatory roles. You can edit this list before sending invitations and view all contacts in an enhanced investor ledger.

For LPs: From the Closings welcome page, you can add or remove contacts, while specifying who has signing authority. New collaborators will receive email invitations to access the subscription.

3️⃣ Enhanced Data Room Access

Multiple stakeholders from a single LP entity can now access the Closings data room, ensuring everyone involved can securely access your fund’s information.

How do I learn more?

To learn more about multi-party collaboration in Closings, check out our detailed support articles or reach out to your Account Manager for a personalized walkthrough to support your next fundraise.