5 years ago4/27/2021

Make better compensation decisions faster

Carta Total Comp

Carta cap table customers can now access our benchmarking and planning platform to streamline their compensation processes and compensate with confidence.

What’s new?

Workflow tools built on top of the world’s largest equity data set and powerful HR integrations to help you make better compensation decisions faster. Carta Total Comp customers are now able to access the following compensation benchmarking and planning features:

• Automated Leveling - Map each of your employees into an area, track and level using Carta’s universal leveling framework.
• Scorecard - Summarizes employee salary and equity information from your HRIS and cap table to give a holistic overview of your organization’s total compensation.
• Bands - Automatically generate equity and salary bands for any role by filtering for job area, track and location.
• HRIS Integration - Integrate instantly with any of the most common HRIS systems.
• Coming Soon - Plan -  Easily build, manage and apply your compensation strategy across your employee base.

Get a pulse on your org through your company Scorecard tab

Benchmark any role in the Bands tab

Availability

• If you are interested in learning more about Carta Total Comp, please reach out to your Carta Customer Success Manager or sign up here.
• You must be a Carta cap table customer to sign up for Carta Total Comp.

Additional Resources

• Carta Total Comp announcement from our Chief Product Officer, Heidi Johnson. Link to Blog Post .

David Lichtenstein

5 years ago4/26/2021

Fund performance metrics on Carta

We know how important Carta is in helping fund managers manage and track the performance of their funds. This month we've add a host of new features to help fund managers get and understand the metrics they need about their funds.

Here's whats new:

1. New fund performance page

• New table view with an option to 'switch to chart view'
• Added metrics definitions and explainer tool tips
• Period selector to allow you to easily select ‘end of’ last year, quarter, or month.
• Traceback for very metric so you can to view the underlying source data
• New API using Carta General Ledger for all contributions and distributions data.

Example of new Fund Performance page:

Example of traceback of TVPI metric as of 12/31/2020:

2. New Excel export:

We've added a new export on the page that includes all the metrics and details about the underlying data.

3. Support for parallel entities:

We've also added support for parallel entities (or fund families). You will be able to see all the above features at a consolidated level.

Where to find: Log in to Carta > Select a fund within your investment firm > Select the Fund performance tab

Timing: Rolled out to funds using our Fund Administration services on April 16, 2021.

Audience: General Partners, CFOs, Investment teams, Limited Partners.

Jordan Agnew

5 years ago4/20/2021

Deal Documents on Carta

Fund managers are flooded with troves of documents for every investment their fund's make. These documents house vital terms that need to be quickly referenced during deal negotiations and potential exits to answer questions like- Who has blocking rights? Keeping these documents organized and easily accessible is also key to running a stress free audit that institutional LPs can have confidence in.

What’s New

For our early access group, funds using the Carta General Ledger can now see their deal documents directly on their realtime SOI. For each portfolio company, easily access documents by asset including both new investments and the supporting documentation for subsequent valuation updates.

How it works

1. Work with the Carta team to capture all deal documents

2. Click through any asset on the realtime SOI

3. See all associated deal documents and valuation support

4. View or download the actual documents to verify any needed terms.

5. Have your Carta Fund Administrator grant your auditor access to the Carta General Ledger so they can access any documentation/support the same way.

Stay tuned as we roll this out to a bigger audience and introduce more tools to make keeping track of deal terms across a portfolio even easier. Reach out to your account manager if you would like to be considered for early access.

Timing: Rolled out to Carta Fund Administration early access clients April 2021

Audience: CFO's , Fund Managers,Auditors , General Partners

Alex Legault

5 years ago4/19/2021

Carta’s public company reporting experience has been updated

What’s changing?

The public reporting experience has been enhanced and is now more consistent with Carta’s private markets reporting. Public company administrators can now more easily run reports in Carta.

Improvements include:

• Reports are now organized into folders by category
• Reports are searchable
• Certain reports that were previously run in areas outside of the reporting tab are now organized into the reporting experience (example: RSU settlement report)

A Virtual Tour is available via the Start Virtual Tour link at the top left corner of the reporting experience. For a limited time, the legacy reporting page can be visited via the Take me Back button at the top of the page.

Who this affects

Public company administrators

Timing

This feature will be available on 4/19/2021.

Bryan Wells

5 years ago4/12/2021

Run a Single Report to Aggregate Security-Level Details by Stakeholder

What's changing?

Companies can now quickly get the information they need and reduce room for error through our new report builder template. This ‘stakeholder ledger’ enables admins to pull information on stakeholders, cap table, and vesting information in a single report.

Users no longer need to combine multiple reports or run offline calculations to view vested/unvested, forfeited, excised, cost center, employee ID, and relationship in one place.

To create a Stakeholder Aggregate report on Report Builder

Click ‘Create a custom report’ on the Capitalization > Reporting page, and select ‘Stakeholder ledger’.

This will open up the Report Builder interface. From here, you can select any of the available columns. Note that not all columns are available, as some cannot be aggregated at the stakeholder level.

What’s next?

During Q2 we will be adding additional columns, starting with fully diluted ownership. We will also be adding additional filtering options, starting with specific equity plans and share classes.

Alex Chen

5 years ago4/12/2021

Private Options International Exercise- Supporting 3rd party money transfer payments

Non-US optionholders at US private companies will now be able to send exercise payments to Carta from 3rd party money transfer providers such as Wise(formerly known as TransferWise), Revolut, Xoom, Remitly etc.

We are giving optionholders the flexibility to either send payments through 3rd party money transfer providers or through wires initiated from banking financial institution.

Who this affects:

Non-US optionholders at US companies, when international exercise via wire feature is enabled by their company

What was the problem:

When we launched the ability for optionholders to wire exercise funds to support in-app money movement, optionholders were hit with bank fees, including intermediary fees, which led to holders underfunding or overfunding their exercises.

Sometimes, optionholders had to walk to a bank to wire the exercise funds as some of the banking financial institutions did not support online wire transfer.

What’s new:

Optionholders can use the same payment instructions provided after an exercise is approved and send funds via 3rd party money transfer providers.

Ensure that under "Recipient gets"  in 3rd party money transfer providers you input exact USD funds required for exercise payments. If amount required for exercise does not match with received funds, exercise will be underfunded and we will require remaining funds to complete the exercise.

Once Carta receives exact funds, we initiate outgoing payment to the company. After payment to the Company is succeeded, we generate Certificate.

This feature is an additional payment option that Carta is providing for our customers

Timing:

LIVE for companies that have exercising and settled via Carta feature turned on.

If you would like to have this feature added, contact Carta support!

Aneetha Sampath

5 years ago4/2/2021

Vesting & Exercise Status Bars

Users viewing the "Vesting schedule" tab in the security details modal will now see a new column in the "Progress" section labeled "Status" under which progress bars appear next to each vesting tranche that indicate the vesting and/or exercise status for each vesting tranche.

Who this affects

All users in all companies with securities that have vesting schedules

What's new

For security holders and administrators viewing individual security details, click on the "Vesting schedule" tab to see the new status bars (see red boxes below):

Depending on the status of a security's vesting and exercise status, you'll see the following colors:

• Gray: unvested tranche
• Light blue: vested tranche
• Dark blue: exercised tranche

Previously, if there was an exercise for part of a vesting tranche, you'd either see the row colored in gray if the tranche was unvested, or you'd see the row colored in blue if the tranche was vested - this was confusing since neither of these results were technically accurate.

Now, if a vested tranche is partially exercised, you'll see the dark blue exercise color overlaid on the light blue vested color (show below). If an unvested tranche is partially exercised in the case of an early exercisable option grant, you'll see the dark blue exercise color overlaid on the gray unvested color.

Timing

Live now!

Vince Lo

5 years ago4/1/2021

Exercise History - Shareholders can now centrally view their complete exercise history

Users can now access their exercise history across their entire portfolio in one spot. This makes it easy to review their activities over a defined time frame - like a tax year!

Who this affects:

• Shareholders who have exercised a private company option grant

What's new:

• Find all exercise details in one location- Within Exercise History you can see a report of all your exercises across your entire portfolio. This makes it easier to get an at-a-glance view of your exercises activity.

• Filter for specific companies or date range - Narrow your report by company or date range to customize your report.

• Customize your report- Choose which fields are relevant for a given report.

• Ex port your report - Download and view your report in a portable CSV format.

Timing:

• Released March 2021
• Support for all public company exercises coming Q2 2021

Where to find Exercise History

• When viewing your portfolio, select the Account drop down menu to find Exercise History

Gwynne Burgess

5 years ago3/29/2021

Stakeholders from public companies can now more easily view their share and cost basis information

Who this affects:

Public company stakeholders

What's new:

Public company stakeholder portfolios now feature share lot details and transaction details tabs, capturing information about shares that are held and shares that have been sold.

Share lot details tab:

The Share lot details tab shows the stakeholder’s share lots. Stakeholders can view their acquisition date and cost basis for all share lots, as well as the source of the shares. For share lots linked to ISO awards or employee stock purchase plans, this view shows a qualifying date capturing the earliest date that the share lot can be sold in a qualifying disposition. The FMV at acquisition is also captured in the table to facilitate tax analysis.

Transaction details:

The second tab features transaction details for any sold lots. Stakeholders can view their sold share lots and their related cost basis and acquisition dates. This view also shows the disposition type if the share lot is linked to an ISO exercise or ESPP purchase. The view captures the proceeds for each liquidated share lot.

Bryan Wells

5 years ago3/25/2021

Certificates of exercised option grants are now generated and issued after funds are confirmed

For private companies, Carta will now generate the resulting certificate after the option exercise funds are sent to the company and have succeeded (may take 1-2 business days).

Who this affects:

Private companies: Admins and shareholders

What was the problem:

Previously, resulting certificates were generated after Carta confirmed the funds from stakeholder, but before the funds were sent to the Company. This created reconciliation issues for the company as they could not verify if funds were sent to the company before issuing the certificate.

What’s new:

We have now updated the flow to generate the certificate after funds are sent to the company, which may take 1-2 business days for the company to receive the funds.

This will help Company admins to reconcile exercise funds received during the exercise workflow.

Aneetha Sampath

5 years ago3/19/2021

Automated partner matching for Schedule K-1 uploads

Sending K-1s to the right Limited Partners can be a manual, error-prone process. The new K-1 uploader helps ensure that every tax document goes to the right LP. When you upload your K-1s into Carta, our system will automatically match or suggest matches for LPs based upon name and tax ID.

Who this affects

LP Portal customers, Fund Admin customers

What’s new

We have released a new tool for LP Portal customers to easily upload Schedule K-1 tax documents. This is the same tool used by Carta’s internal fund administrators.

The tool scans each K-1 to look for partner names and tax IDs, and compares them to the names and tax IDs we have on file.

If a K-1 matches with exactly one partner, the tool will automatically assign it to that partner.

If the tool is unable to definitively assign a document to a partner, it will suggest potential matches for user review.

To access the K-1 uploader, visit the Partners tab. Under Documents, select Upload documents and choose Schedule K-1.

Timing : This feature was released March 3, 2021

Ives Chor

5 years ago3/4/2021

New Equity Reporting Page

Starting 3/22, clicking on the Reporting from the Capitalization dropdown will take you to the new Equity Reporting page.

The new page contains all the equity reports you're familiar with along with significant improvements to help you access data more quickly and in the manner that you need. You'll notice:

• Custom reporting - set filter criteria and add, edit, and remove data columns. Save these custom reporting templates for future use.
• Preview of securities ledger-based reports
• Search to quickly see standard Carta-provided reports as well as your custom reports

You'll be able to switch back to the classic reporting experience via the blue banner at the top of the new Equity Reporting page until 4/5/21.

For questions or comments, please email out to reports-feedback@carta.com

Alex Chen

5 years ago2/26/2021

Pre-filling Subscription Documents for Existing LPs

If you are an LP, you’ve felt the pain of filling out subscription documents. You go through the same long investor questionnaire with the same questions for every fund investment you make. With Carta subscription documents, now you don’t have to.

What’s New

Limited Partners who have already completed a subscription document on Carta can now re-use their information for future investments. They can add their subscription information in just a few clicks.

Prefilled LP Subdocs

Click for sound

How it works

1. Limited Partners select the portfolio for the entity they are investing through

2. The form is pre-filled with information from their previous subscription. Any questions that are specific to this investment are highlighted for the Limited Partner to answer.

3. Limited partners review and confirm their information is correct.

Check out our Q1 product webinar recap blog post to see how simple the closings process will be.

Timing: Rolled out to Limited Partners on February 24, 2021

Audience: Limited Partners, General Partners

Ashley Chang

5 years ago2/26/2021

Biometrics Login on Mobile

To provide safe and easy access to our mobile users, we are introducing biometrics login on the Carta iOS and Android apps.

This update will make it easy for users to log in to the Carta app through the use of Touch ID or Face ID on supported iOS devices, and Facial or Fingerprint recognition on supported Android devices.

Note: Only biometrics login for a single account is supported at this time.

Sudeep Kumar

5 years ago2/26/2021

Stakeholders can now more easily review their shares and tax withholdings from RSU settlements

Stakeholders can now view details about their public RSU settlements in the RSU settlement history view.

Who this affects:

Public company stakeholders with RSU awards

What’s new:

From the portfolio view, stakeholders can navigate to each individual RSU grant and view a comprehensive settlement history:

The settlement history shows the settlement type, shares sold or withheld for taxes, and the net shares that the stakeholder receives.

Stakeholders can download a Settlement details report capturing the breakdown of their taxes related to the RSU settlement, asl well as shares sold or withheld for taxes:

Bryan Wells

5 years ago2/25/2021

Public company administrators can now track cash paid for taxes upon RSU settlement

Carta now features a Pay Cash settlement type for public company RSUs settlements. Administrators can set up a settlement event for participants paying cash to cover their tax obligations for an RSU release.

Who this affects:

Public company administrators

What's new:

When entering in a public RSU settlement through Transactions: RSU settlements, administrators can now select Pay cash as a settlement type.

The Pay Cash settlement type calculates taxes, but does not reduce the gross shares vesting by the shares sold or withheld to cover taxes. Carta captures the ordinary income and taxes to be withheld in its reports as well as in the settlement flow.

Stakeholders will see their total gross quantity of shares in their portfolio post settlement, along with an indication that they paid cash to cover taxes.

Bryan Wells

5 years ago2/18/2021

Fund Administration Experience on Mobile

Carta Fund Administration clients can now access both company investments and fund overview information on the Carta iOS and Android apps. This will help investors get information on the go.

Who this affects

Fund administration clients

What’s new

Fund administration clients can now view both company investments and an overview of their fund entities on Carta.

• General partners can view and search through the company investments
• The new fund overview page provides a summary into the fund investments and also the top five investments, which can be filtered based on Gross IRR, Cost, Value, Gain/Loss, and Multiple.

Sudeep Kumar

5 years ago2/17/2021

Tax Documents on Mobile

At Carta, we want to make complex things simple and easy to understand. To that end, we’re excited to release Tax Documents on Mobile.

This update will allow Carta users to access Tax Forms 3921 and 1099-B from the dedicated Tax Documents section within their Account.

To access Tax Documents, users can navigate to their account and select Tax Documents under portfolio information. If a user has multiple portfolios, they can choose a desired portfolio to view the documents.

Users will now be able to view, download and share tax documents from the mobile app.

Sudeep Kumar

5 years ago2/12/2021

Administrators can now record public company net exercise transactions

Net exercises can now be entered as off platform transactions for public companies. This functionality leverages Carta’s tax calculations to determine the shares to withhold for option cost and taxes, as well as the net shares that the stakeholder receives from the transaction.

Who this affects:

Public company administrators

Navigate to Securities > Equity awards. To the right of the option grant’s row, click the V drop down and Select Off System Transaction. Select Net Exercise as the Exercise Type:

Enter the transaction date and shares to be net exercised:

Carta will then use the stakeholder’s address(es), relationship history, and year to date compensation information to calculate taxes and the number of shares to withhold to cover the total cost of the exercise

Administrators can review and adjust taxes related to the exercise after Carta initially calculates them. Changes to tax amounts will update the quantity of shares withheld to cover option cost and taxes.

After reviewing and saving,  the transaction will appear on reports as a net exercise. Both the exercise details and exercised and settled reports will reflect the shares withheld for taxes and net shares that the stakeholder receives.

Resources:

[Support Article] Record Net Exercise Transactions- Public Company Admins

Bryan Wells

5 years ago2/4/2021

Health Check Dashboard [Early Access]

The Health Checks Dashboard allows you to identify, understand, and take action to fix data inconsistencies in your Carta account. It is currently rolling out to select customers under “Early Access”.

This article focuses on the following topics

• Who can access the dashboard
• Where to access the dashboard
• How to navigate the dashboard
• How to fix a health check error
• FAQs

Who can access the dashboard

You must be a Company’s Legal Administrator, Company Editor, or Company Viewer to see the dashboard. Note that Company Viewers do not have the ability to edit company data, and will only have view-access to the dashboard. Learn more about permissions.

Where to access the dashboard

How to navigate the dashboard

Tags

Tags help you navigate to Health Checks related to a certain topic. If you select more than one tag, checks that apply to any of the tags will be displayed below.

Tabs

Required: Shows Health Checks that require attention as soon as possible and may post a transaction risk if not addressed. These reflect instances where bad data can propagate to other nodes in the Carta network is not address promptly

Recommended: Shows Health Checks that can improve the Carta experience and ensure different Carta experiences reflect consistent values.

Dismissed: Shows Health Checks that have been dismissed by users. Certain Health Checks will flag issues that may be expected discrepancies, from a company perspective. These will be dismissable

Health Check Cards

Each card will contain information on why a fix is important and instructions on where to fix the issue. Tooltips to the right of the title, contain guides to support articles and more details on how an issue can be addressed.

Fixing a Health Check Error

There are two types of Health Checks- ones that can be fixed by a company user and ones that require a Carta team member to make the underlying changes.

If a Health Check error has a modify action, you will be able to address the issues on your own.

For other health checks, we may recommend that you reach out to Carta Support to process the data change on your behalf.

FAQs

1. Will Carta continue to work, if I don’t address Health Check errors?

2. Yes, Carta will continue to work, but you may see discrepancies in Carta tools and reports. We suggest that you address required issues as soon as you can to ensure Carta works smoothly.

3. Can Carta fix the data issues for me automatically?

4. We take your data integrity very seriously. As such, we want to ensure all changes to data are reviewed and verified by an account owner. In some circumstances, we’ve improved the product to capture more data and need your help populating the new data fields.

5. Why is it important for me to address Health Check errors?

6. All Carta tools depend on clean and accurate data to work correctly. For example, an expense report requires vesting schedules and stakeholder relationships to be filled out correctly.

Alex Chen

5 years ago2/1/2021

New stakeholder address management features for Carta admins

Company administrators can now use the stakeholder address history feature to track multiple, effectively-dated addresses per stakeholder as they move from location to location. Additionally, we've also improved the experience around managing and viewing addresses in Carta for stakeholders based outside of the United States.

Who this affects:

Company administrators responsible for managing stakeholder information in Carta

What’s new:

• Multiple, effectively-dated addresses per stakeholder. Companies can now reflect a timeline or history of addresses for a stakeholder as they move from location to location
• Extra structure for non-US addresses. For stakeholders based outside of the US, companies can now track and view stakeholder address information at the country, country region (i.e. state/province/county/etc.), and city level
• Integration with Carta's tax system. When an option exercise occurs, Carta will estimate tax withholding amounts using multiple tax jurisdictions if the stakeholder lived in more than one location during the vesting period

Track stakeholder address history as they move from location to location:

Old form for adding a non-US stakeholder address:

__

New form for adding a non-US stakeholder address:

__

Timing:

All companies will have access to these new features by Wednesday, February 3rd

Resources:

• [Support article] Manage stakeholder addresses in Carta
• [Support article] Manage employee tax withholding in Carta
• [Support article] Country and country regions in Carta

Vince Lo

5 years ago2/1/2021

Tax mobility feature available to Carta admins

For company administrators using the new "Tax rules" page in Carta, they can now choose to enable the tax mobility feature for their company. If tax mobility is turned on, Carta will use a stakeholder's address history when estimating taxes for withholding purposes.

Who this affects:

Company administrators with access to the "Tax rules" page in Carta

What’s new:

• Enable tax mobility for more accurate tax withholding estimates. Companies can turn the tax mobility feature on under Compliance > Tax rules. If tax mobility is enabled, Carta will look at a stakeholder's full address history when estimating applicable taxes for a withholding event (e.g. NSO option exercise, RSU settlement).

If you don't already have access to the "Tax rules" page in Carta, reach out to your account manager to request access.

Navigate to Compliance > Tax rules to find the tax mobility feature:

Timing:

All companies with access to the "Tax rules" page will have access to the tax mobility feature by Wednesday, February 3rd

Resources:

• [Support article] Manage employee tax withholding in Carta
• [Support article] Manage stakeholder addresses in Carta

Vince Lo

5 years ago1/21/2021

Carta HRIS Integrations now available to Carta admins

Carta integrations to HRIS (Human Resources Information System) Providers are now available to all users with HR Administrator or above Carta access. The HRIS Integrations we have today are one-way data synchs from either BambooHR, Namely, or Workday into Carta.

Who this affects:

HR Admins, Company Editors, and Legal Admins for all companies

What’s New:

Carta HRIS integrations are now available to users with HR Administrator, Company Editor, and Legal Administrator access. Carta HRIS integrations can:

• Flag Terminated Employees. Employee terminations made in the HRIS appear as pending termination events in Carta
• Flag Existing Stakeholder Updates. Employee profile updates made in the HRIS will appear as pending stakeholder profile updates in Carta

Carta HRIS integrations functionality can be enabled via the Company > Settings > Integrations page. The data pulled by the HRIS integrations is then shown in the Stakeholders > Stakeholder Updates page where, you can find:

1. Pending HRIS employee profile updates for stakeholder profiles that already exist in Carta

2. Pending terminations for employees who were terminated in the HRIS but not in Carta

Learn more about setting up each HRIS integration here:

• BambooHR
• Namely
• Workday

Lastly, for Enterprise companies, Carta also supports flat file integrations with HRIS Providers that support automatic report uploads via SFTP. Contact your Carta Account Manager if you want access to the flat file integrations feature.

Steven Camina

5 years ago1/19/2021

International exercising - submit and settle your exercise with Carta

Non-US optionholders at US private companies will now be able to initiate and pay for option exercises through Carta.

Who this affects:

• 🌐 Non-US optionholders at US private companies that have enabled this feature

Supported platforms:

• 💻   Web
• 📱   Android and iOS

What's new:

• Submit exercises on Carta - When enabled by your company, option exercises can be initiated within Carta.

• Submit payment to Carta - After admin approval, pay for your exercise with a wire transfer to Carta. Once Carta receives the full cost of the exercise, funds are transferred to the issuing company.

• Exercise and payment status - Track exercise and payment status within Carta. Be notified of any issues with your payment.

• Immediate certificate generation - After receiving the funds for your exercise, a stock certificate is immediately generated for company officers to sign.

Timing:

• This feature is being made available to US private companies gradually throughout 2021.

Resources:

• [Support article] Exercise options via wire

Gwynne Burgess

5 years ago1/19/2021

Option exercise settings for exercises initiated and settled on Carta

Managing option exercising is now easier than ever.

All exercises are now settled through Carta—US optionholders pay via ACH, Non-US optionholders pay via a wire transfer. Carta conveniently manages payment reconciliation and payment issues such as insufficient funds or overpayments. US private companies can centrally adjust exercising via the Transaction Settings page.

Who this affects:

• 🇺🇸  US private companies

What's new:

• 💸 All exercises are settled with Carta - No matter where your optionholders are located, Carta will receive all funding for on-platform exercises. US holders pay for their exercise via ACH and non-US holders pay for their exercise via a wire transfer to Carta. Company admins will no longer need to mark exercises as paid.
• ✉️ Communication with optionholders - Carta communicates directly with optionholders to resolve payment issues, letting them know of an outstanding balance for an exercise or facilitating a refund for overpayment.
• ❌ A uto-cancel unpaid exercises - If a wire exercise is unfunded or underfunded for 30 days after admin approval, the exercise will automatically be canceled.
• ⚙️ Clear transaction settings- Control option grant exercisability easily in one central location

Timing:

• To be rolled out to all customers by the end of 2021

Action required:

• Visit Company > Settings > Transaction Settings to opt in
• Once your company has access to this feature, you must opt in within 30 days otherwise online exercising will be disabled
• If you do not yet have access, reach out to your Customer Support Manager to get immediate access

Resources:

• [Support Article] Enabling online transactions
• [Support Article] Exercise options via wire
• [Release notes] Exercising as non-US optionholder

Gwynne Burgess

5 years ago1/14/2021

Limited Partner Onboarding flow

Limited partners now confirm that their information is accurate when viewing new investments on Carta. This will help ensure accurate information for tax season.

Who this affects

Limited partners with fund investments on Carta and funds using Carta's fund admin and LP portal products

What's new

Limited partners can now review and update their information in the onboarding flow for their fund investment.

• Limited partners can confirm or update their address information
• If a new address is added, they can use that for all of their fund investments

Timing

This was released for Limited Partners on January 14, 2021

Ashley Chang

5 years ago1/6/2021

Limited Partner Settings

The new Limited Partner Settings page allows Limited Partners to control their information across fund investments on Carta.

Who this affects

Limited partners with investments into funds on Carta.

What's new

Limited Partners can now manage and share their information across fund investments. Previously, Limited Partners had to contact their fund admin or the Carta support team to update their information. Now they can update their address and other information used for taxes and distributions in Settings.

• Limited Partners can choose to use an address for individual fund investments or apply to all investments
• When updating an address, a Limited Partner can choose to make that their “default” address to be used for any new investments added to Carta.
• Partners investing through multiple entities can swap between entities and assign the correct information to each fund investment.

Timing

This went live to all Limited Partners on January 6, 2021

Ashley Chang

5 years ago12/30/2020

Exercise flow improvements

Optionholders at private companies will now see an improved exercising experience where they can clearly see fair market value (FMV), exercise spread, and option income.

Who this affects:

• Optionholders exercising option grants from private companies

What's new:

• Current fair market value (FMV) - Optionholders can see the current fair market value the issuing company has on file, which determines the tax implications of their exercise.

• Exercise spread on option grant - Optionholders can see the per-grant spread when selecting a grant to exercise. This shows the difference between exercise price and fair market value.

• Overall gain/loss - When selecting the quantity of shares to exercise, optionholders can see the overall gain/loss for their exercise. This is useful for understanding tax implications of an exercise.

• Tax implications - Optionholders will be able to see tax implications more clearly. If the exercise is taxable and the issuing company has provided tax rates for the jurisdiction of the holder, the holder will see a table of the relevant taxes for their exercise.

Gwynne Burgess

5 years ago12/30/2020

Carta now supports performance conditions for grants with custom vesting schedules

Performance conditions can now be set at the tranche level for vesting schedules that have been customized for an individual grant. Administrators can create custom schedules for individual participants and attach vesting tranches to performance conditions.

With this enhancement, performance awards can now be attached to grants without vesting templates. This compliments our existing performance award functionality that allows for performance awards to be attached to vesting template tranches.

To create a custom performance vesting schedule, first select Custom vesting in the vesting schedule column when drafting an award:

This selection will bring up a vesting schedule creator. If the vesting schedule is unique to this particular grant, click Custom one time schedule.

Note: if the vesting schedule for the grant is not unique, we recommend clicking Create schedule as template. Creating a template will allow multiple grants to use the same vesting pattern.

After clicking Custom one-time schedule, enter the vest dates and quantities. If a performance condition applies to one or more of the tranches, select it in the Performance Condition column.

Following the creation of the custom performance vesting schedule and the drafting of the grant, the grant’s vesting schedule and payout will be governed by the performance condition. From this step, the performance condition’s achievement and payout function in the same way as grants with standard and custom performance vesting templates:

Bryan Wells

5 years ago12/15/2020

Carta now supports multiple performance conditions on a single grant

Performance conditions for performance awards can now be individually set per vesting tranche. Administrators can control the payout of performance conditions, including payouts greater than or less than 100% per vesting tranche.

Creating performance conditions using custom vesting templates

When creating a custom vesting template, performance conditions can be set at the vesting tranche level. These performance conditions are controlled through the performance module and administrators can set payout percentages upon condition achievement.

Performance conditions will apply to every grant attached to the performance vesting template.

Performance awards can also be added on to milestone vesting templates. These act as a second performance condition in addition to the achievement of the milestone event. Milestone vesting templates can be used with or without performance conditions:

Achievement of a performance condition will flow back to all grants tied to vesting tranches set up with that condition:

Bryan Wells

5 years ago12/11/2020

Email customization for document sharing

This month we released a new feature on Carta to allow users of a fund to customize the email sent to LPs when sharing documents. This feature is available for all Fund Administration and LP Portal customers. To use the feature:

1. Select ‘Share documents’ on the Documents page.

2. After select Share documents you will have three options for sharing documents: Send with daily digest, Send immediately, No notification.

3. When ‘Send immediately’ is selected you will have the option to

Open email editor.

4. The email editor will allow you to:

• Customize the subject line
• Customize the header
• Customize the email body
• Include dynamic fields in your text
• Send a preview email to yourself before sending

5. After completing the email customization, you will be able to share the documents to your LPs.

Jordan Agnew

5 years ago12/10/2020

Performance Awards in Custom Reporting

You will now be able to see data related to performance awards in our custom reporting suite.

These fields include:

You'll see these fields in these reports and are able to add them as optional fields in other custom reports:

Alex Chen

5 years ago12/8/2020

Improved Equity Plan Balance Report

We're excited to release a new Equity Plan Balance Report for our Private Market customers. This report allows you to see your plan balance across all equity plans and better reflects the effects of plan pour overs and transactional events on securities.

You'll notice some improvements:

1. All equity plans will be included - you no longer need to select a equity plan while exporting the report
2. Pour over calculations are more accurate - overdrawn balances are reflected on plans clearly
3. RSAs are now tracked under "Equity Grants" - we'll be consistently tracking RSAs its an equity award in future reports

You can find this reports under top menu at Capitalization > Reports.

We'll be retiring the older version of the equity plan balance report as part of this release.

Alex Chen

5 years ago12/8/2020

Subscription Document Signing for Carta SPVs

Investors can now quickly and efficiently close SPVs on Carta!

General Partners invite prospective investors to their fund, those investors can read and complete the subscription documents, and GPs can close the fund –– all in one simple tool.

This product currently works with Carta SPVs using standard subscription documents.

Over the next few months, we'll expand this to allow full funds to close on Carta using their own documents and to pre-fill data for LPs that already have a Carta account.we'll

Ashley Chang

5 years ago12/7/2020

Information Clarity in the Equity Awards Ledger

What’s coming: The "Quantity" column shown in the "Options" tab of the Equity awards ledger will be re-labeled to "Original quantity" to more accurately reflect the information in this column.

We're highlighting this small change because it comes in anticipation of some improvements to Carta's transactional workflows that will reinforce the dynamic nature of option grants and their quantities.

Who this affects: All companies

What’s better: Information clarity

Timing: Live for all customers December 7th

Vince Lo

5 years ago11/30/2020

Roll-forward Reporting for Transaction Modeling

With Carta's new customizable ledger reports, you can easily calculate important values to determine key quantities in potential future transactions.

The fields below are available in all of the customizable ledger reports ( Learn more about customizing reports).

Adjust the as-of date to run the report for a future date. Carta will use existing information, such as vesting schedules, to project future quantities.

Alex Chen

5 years ago11/6/2020

Exercisability settings for non-US companies

Non-US, private companies in supported regions now have the ability to enable exercising workflows for their optionholders. Optionholders can access wire payment instructions within Carta after exercise approval to send funds directly to the company.

Who this affects:

• 🇰🇾   private Cayman Island companies
• 🇨🇦   private Canadian companies
• 🌐   + more locations in the future!

What's new:

• Supported non-US, private companies can enable offline wire exercising, allowing their optionholders to initiate and track an exercise request within the Carta platform.
• Company admins can manage payment instructions that are provided to optionholders after an exercise is approved.
• Company admins can toggle exercisability on and off, as well as select which grant types are exercisable.

Action required:

• Company admins must visit the Transaction Settings page to enable exercising
• Companies must have a valid fair market value (FMV)

Resources:

• Support article: Exercise workflow for optionholders
• Support article: Overview of option exercising via the offline wire exercise workflow

Gwynne Burgess

5 years ago11/4/2020

Preferred shareholders can request ownership when accepting securities

What's New:

• Preferred shareholders can now request ownership details (like fully diluted share count or detailed cap table information) when they accept certificates. Previously this request action was available only after the stakeholder's account had been set up and a security accepted. This change helps empower company admins to set the correct respective access levels for investors more effectively. This helps both companies and their investors get the most out of the Carta platform with clearer information sharing workflows.
• The information management workflow for companies remains the same. Company admins can still select the appropriate level of data sharing access for each stakeholder. For our summary of these levels, we've detailed them here.

Accept screen for preferred shareholders accepting preferred shares:

We will be rolling out these changes during the week of November 2nd.

Ry Sullivan

5 years ago10/20/2020

Using Custom Spreadsheets When Adding New Stakeholders in Bulk

What’s coming: Admins can now upload new stakeholder information using data stored in custom spreadsheets/reports

Who this affects: All companies

What’s better:

For companies that use HR Providers to store their stakeholder/employee information, their company admins can now upload new hire information into Carta in bulk using the HR Provider's report (xls, or xlsx) with minimal modifications.

This workflow is an enhancement to the existing Bulk Add Stakeholders flow, with a new step for users to map the columns in the report to Carta data fields.

Timing: Live for all customers Oct 20.

Steven Camina

5 years ago10/20/2020

Changes to Watermark Styling

We've listened to your feedback on watermark styling obstructing the readability of the documents and we've made a few changes to address those concerns. We'll continue to iterate on our watermarking capabilities and tools in the coming months and we are starting with the following changes.

Here's a sample document with the old watermark styling

Here's the same sample document with the new watermark styling

Specifically, we've made the following changes with this iteration:

• Reduced opacity of the watermark text
• Updated alignment between the rows
• Fewer repetition

Who these changes affect?

All Carta users who choose to apply watermark on their documents. These changes will be rolling out to all users today.

Amol Patil