Carta Release Notes - Product Updates

4 years ago7/23/2021

VC Fundraising Data Room

What’s new?

Fund Managers are now able to set up a fundraising data room as part of our VC fundraising process. The Carta platform makes it easy to run the entire fundraising process in one place – from creating your data room to closing your fund with our subscription document process.

Key features of this data room include:

How it works:

The fundraising data room is integrated into the Closings process. Any fund on Carta can use this data room with or without our subscription documents.

Setting up a fundraising data room

  1. Carta staff will create a fund and turn on Closings for you. On the Closings tab, the user will see the option to set up a data room
  2. After clicking Set up, users will see more information about what the data room offers. Then users can set a name and choose which settings to apply to this data room.
  3. After the data room is created, documents and folders can be uploaded to the data room.

Viewing / Removing access

Firm users can see which users have access, which partner they are associated with, and the option to remove access from the Access section of the data room.

Viewing Potential Investor Activity

Firm users can view LP activity, which is often an indicator of how interested they are in the fund, by looking at the Activities section of the data room.

Watermarking

If funds turn on the watermarking feature in data room, all downloading PDFs will have a watermark containing the user's name, email, and time of download.

LP access to data room

LPs can are invited to the data room through the Closings tool. They will receive an email invitation to view documents in the data room.

LPs can use the Request subscription documents button to request documents from the fund. When LPs are done viewing the data room, they can click Dismiss task to remove the task from their tasks section.

Who can use this?

All investment firms on Carta. Contact your fund administrator or investorservices@carta.com to turn this on for your fund. Read more about the details of how to use this on our support site.

Timing:

This is available to all investment firms as of July 21, 2021

Ashley Chang

5 years ago7/20/2021

Modify and Request Information From Portfolio Companies

What’s new?

Our Portfolio Insights clients can now easily request information from their Portfolio Companies. We’ve created the flexibility to select file types, KPIs, or information about the portfolio companies’ upcoming financings.

How it works

  1. Navigate to Manage RFIs under Settings and select which companies from your portfolio you’d like to make edits to:

  2. Enabled: Will request data from Portfolio Companies

  3. Fiscal Schedule: Control if your request is a standard quarter end, or +1 or +2 month end (e.g. Q2 fiscal schedule of July 30 or August 30)

  4. FND: Ask if Portfolio Company will be raising funds in the next year, if so, by when and how much.

  5. AER: Do you want to send automatic email reminders if the Portfolio Companies did not reply.

  6. Period: Request income statement figures for the last 3 months, 6 months, or 12 months

  7. Requested Files: Request between:

  8. Articles of incorporation and Cap Table (for companies that don’t manage their cap table on Carta)

    1. Financials
    2. Forecast and Board Decks.

  9. Requested KPIs: Select from the list of 40 industry standard KPIs (Users, ARR, Web Traffic, etc). Enable KPIs individually or in industry-specific batches.

  10. Toggle data collection, tailor the documents to be requested, and enable various KPI fields for a more intuitive RFI preparation process

  11. Save preferences and send your next portfolio RFI during your typical request cadence.

  12. Portfolio company upload portals will be customized accordingly, ensuring you’re only requesting exactly what you need from each logo

Suggestions

We recommend limiting KPIs to 3 or 4 to keep portfolio company upload portals from becoming overwhelming.

Limitations

Custom KPI (i.e. those that don’t exist in our drop down) functionality is scheduled to be available late Q3 2021.

Timing

The configuration page is currently released and enabled for all Portfolio Insights clients.

Questions?

For more information regarding RFI configuration, or portfolio insights, please reach out directly to your portfolio insights account manager or portfolio-kpi@carta.com.

Keyvan Firouzi

5 years ago7/20/2021

Home Screen Redesign on Mobile

Users with holdings in private companies can now view their holdings details straight from the home screen for easy access.

Who this affects

Shareholders with holdings in private companies.

Supported Platforms

What’s New

With an objective to provide insightful experiences, we’ve redesigned the home screen on the Carta app to display important holding details for each company. Company cards will now present the following information with the ability to view further details when clicked:

Kimberley Chong

5 years ago7/13/2021

Carta Total Comp Updates: Scorecard Export, Next Twelve Months Vesting and More

Check out the exciting new updates we’ve made to Bands, Scorecard and Admin pages

Next Twelve Months (NTM) Equity Ratio

Equity Ratio is now being calculated using Next Twelve Months (NTM) equity rather than Total Equity granted to the employee. The new formula for Equity Ratio is as follows:

An employee’s next twelve months (NTM) equity divided by the target annual equity for a new hire today.

Why did we make this change?

The Carta Total Comp Scorecard is designed to provide a clear view of the compensation health of your business. In order to build a score that better highlights attrition risk, we’ve changed the calculation for equity ratio to be based on unvested equity that will vest in the next twelve months.

Employees compensated below market rate are at risk of attrition, as they would be paid more in a new role than if they were to stay in their current position.

Vested equity does not incentivize employees, because it is already earned, and therefore does not help drive retention; put another way, vested equity is already “in the bank.” Calculating a health score that includes vested equity could lead to overlooking employees who are mostly vested and therefore at risk of going to work elsewhere.

The additional benefit of NTM is that it allows you to compare equity compensation on the same annualized timeframe as salary.

Additional Details

While Equity Ratio will be calculated by using NTM going forward, we will continue to show Total Equity on the company and employee Scorecard.

Scorecard Export

You can now easily download a CSV of the entire scorecard by clicking on the “Export” button. The CSV will contain all of the available columns, regardless of whether they are enabled in the column selector.

Admin Page

Review and modify employee details from the new Admin Settings page. This page has a complete view of all employees synced from the HRIS and cap table.

What’s changing?

Navigate to the Admins page from the Carta Total Comp top navigation bar. From there you can access the “Roles and permissions” tab along with the “Employees” tab

New Bands Version

You can now see the date of the most recent Benchmark version in the Plan and Bands page. With the Preview plan feature, you can review the impact that updated benchmarking data has on the Scorecard prior to applying the new Plan.

Why did we make this change?

When benchmarking data is current, it better enables you to be competitive in today's market with the offers you take to candidates and employees.

Job Area Descriptions and Example Job Titles

Our Roles and Levels are now defined in-app.

Why is this important?

Carta's leveling framework provides a foundation for your company to provide career pathing for employees and to review pay fairness for each job area and level. Without consistent leveling, companies can not accurately compare their employees to market rate data, limiting their ability to effectively hire and retain talent.

To help our customers ensure accurate and consistent leveling, we are now providing further descriptions for each job area we support, so users can make more informed leveling decisions based on commonly used job titles.

What’s changing?

We have added a “Learn more” link in the "Example title" column in the "Bands" tab. This link will launch a modal where you can see sample job titles and descriptions for roles in each job area.

David Lichtenstein

5 years ago7/8/2021

Carta has released a share activity report to help stakeholders track their public holdings

What’s new?

Public company stakeholders can now download share activity reports that capture their transaction activity and change in shares held during any period.

How it works:

By clicking on the new Statements tab, public company stakeholders enter in the start and end date that they would like to analyze:

The resulting report captures holdings at the beginning and ending of the period, and captures any transactions that cause an increase or decrease in the number of shares the participant holds.

Overall change in ownership is tracked in the Portfolio at the end of period section. Holdings are separated into shares originating from ESPP (Employee Stock Purchase Plan) and non-ESPP sources. The section shows holdings in these categories at the beginning and end of the period.

The Equity transactions in period section captures all transactions to equity (non-ESPP) shares during the period.

The following transactions are captured in this section, including the net effect of the transactions on a stakeholder's holdings

The ESPP (Employee Stock Purchase Plan) transactions in period section captures all transactions that affect ESPP holdings.

This section captures the transactions below, including the net effect of the transactions on a stakeholder's holdings

The report also captures transactions that have been entered into Carta for record-keeping purposes. These transactions do not affect holdings and typically reflect transactions where shares are held or sold at an outside brokerage.

Transactions in this section include:

Who can use this?

All public company stakeholders

Timing:

Stakeholders will be able to access this report through their portfolios starting 7/9/2021

Bryan Wells

5 years ago7/7/2021

User demographic survey for Table Stakes 2021

Announcing a new survey to collect demographic information for Table Stakes

Carta users can now elect to provide their demographic information under the user profile section of their accounts.

Why is this important?

In 2018, the #ANGELS hypothesized that the gender equity gap was worse than the salary gap. Carta collects the data to help track and analyze what they called #TheGapTable. Together, we created the first ever report on equity distribution by gender and have continued to create it every year since. Equity is the largest lever for wealth creation in Silicon Valley and beyond; we believe it should be distributed equitably. This year we are focused on bringing that data into our application and making this demographic survey more powerful than ever.

What’s new?

When stakeholders navigate to their user profile they will now have a link to a demographic survey that will be used to power the data analysis for Carta’s Table Stakes in December 2021. We encourage all users to participate as each data point contributes to a more powerful analysis.

Navigate to your name in the top right corner and then “Profile and Security” before selecting “Fill out your demographic information”

Who this is available to

All users located in the US. Users who have opted out of communications or have asked to be added to our “do not analyze” lists will not be included in Table Stakes or other analyses.

Posted on behalf of Jessica Ray who led this project.

Jared Thomas

5 years ago7/5/2021

Capital Calls on Mobile

General partners now have the ability to view and track capital calls from the Carta iOS app. Investment firms can now track the progress of on-going and completed calls along with investor details, on the go, straight from the Carta app.

Who this affects

Supported platforms

What's new

Fund Administration clients can now access their capital call details and investor information from the Carta app.

Sudeep Kumar

5 years ago7/1/2021

Instant KYC for LPs Completing Subscription Documents

Limited Partners completing subscription documents on Carta can now be KYC’ed instantly.

What’s New

If your fund leverages Carta’s KYC/AML service and you have Limited Partners (LPs) completing subscription documents in Carta, these LPs are now instantly KYC’ed on the platform.

Carta’s new instant KYC feature is made possible by Carta integrations with identity and verification databases like LexisNexis, Ekata, Socure, and more.

Limitations

How it Works

  1. As an LP completes their subscription documents, individual LPs (for funds that avail of Carta’s KYC/AML service), will now see a dedicated Know Your Customer section. Here, LPs can input the additionally required information for KYC -

  2. Once subscription documents are signed by the LP, the LP is instantly KYC’ed. If the LP passes KYC, this is immediately reflected in Carta and General Partners are notified to countersign -

Timing: Rolled out to Limited Partners on July 1, 2021

Audience: Limited Partners, General Partners

Steven Camina

5 years ago6/24/2021

Effective Dates for Post-Termination Exercise Period (PTEP)

Post-termination exercise period (PTEP) refers to the amount of time an option holder has after termination to exercise their options. It is now possible to change the PTEP to give employees more or less time to exercise. This can happen on a one-off basis, or across many grants at once.

What is new with this release?

It is now possible to enter an effective date for the post-termination exercise period in Carta. This is needed to track changes over time and to have more accurate financial reporting.

Modifying the PTEP

The PTEP can be modified for a specific grant by selecting ‘Modify post-termination period’.

The original grant and the current PTEP values are visible on the left side of the ‘Modify port-termination exercise period screen’.

Select ‘Add Modification’, then enter an effective date for this change, select a modification reason, select the new modification details, then select ‘Save this modification’.

It is also possible to update the PTEP across multiple grants at once.

More information is available in this support article.

Note: Changing the post-termination exercise periods can have tax and accounting consequences and may need board approval, so consult your legal administrators before making any changes.

Jessica Ray

5 years ago6/24/2021

Public Cash Exercising Redesign

Users: Option holders of public companies

Platform: Web (iOS and Android coming soon)

With an objective to unify the cash exercising experience between private and public companies, we've enhanced the Public "Cash" Exercising flow on Web to make the steps more seamless, intuitive and easy to follow. Implementing these changes to the exercising workflow allows users to review all the important details relating to their option grant exercise in a step-by-step manner, eliminating confusion about tax withholdings and allows them to better understand the stages of their exercise.

While our previous Cash Exercising workflow for public companies got us some great mileage, our processes and their caveats have evolved, which called for a cleaner, simpler and an overall better user experience. Below are some of the highlights that the new Cash Exercising workflow will introduce:

  1. Step-by-step procedure: Intuitive and easy to follow, allowing the user to fully understand the process
  2. Improved tax estimation/information: Targeted tax withholdings information provided to user with respect to the option grant type being exercised
  3. Cleaner UI: Revamped headings, body text, call to action, helpful support links and more!

Irteza Arif

5 years ago5/27/2021

ISO 100K Dashboard

Get the transparency you need to manage ISO/NSO splits with the new ISO 100K dashboard in Carta.

Who this affects

All Carta customers can now access the dashboard under Compliance > ISO 100K.

What's new

The 100K rule for ISOs has been a historically opaque concept in Carta - customers and their legal counsel have often found it difficult to understand how the application of the rule results in the specific bifurcation of ISO vs NSO shares in a particular option grant.

The new ISO 100K dashboard brings a new level of transparency to the way in which ISO options are bifurcated according to Carta's automatic application of the 100K rules. For specific transactions and amendments that fall outside the purview of Carta's automatic bifurcation estimates, customers and their legal counsel can request access to the dashboard's grant editor feature, which allows legal administrators to change the ISO/NSO split estimated by Carta.

Last thing to mention: we worked closely with Orrick (one of Carta's law firm partners) to make sure we were solving this problem in a way that allowed our law firm partners to better support our customers. You can read more about that here on Carta's blog.

Timing

Available now to all Carta customers.

Vince Lo

5 years ago5/25/2021

Support Partially Realized Investments

This past week we released added granularity to the Investments, Overview and Firm Overview Tracking bars for investments. The in-app tracking bars will now show

Timing: Rolled out to funds using our Fund Administration services on May 21, 2021.

Audience: General Partners, CFOs, Investment teams.

Jordan Agnew

5 years ago5/19/2021

Preview and and manage compensation plans

With the new Plans page, you can now craft and manage your compensation plan to meet the needs of a changing workforce. With Plans you can:

  1. Review your active plan or create a new plan.
  2. Edit and preview draft plans.
  3. View your plan history.

Before making modifications to your plan, preview will allow you to see how a change in peer group, band ranges, or location strategy could impact your employees' compensation targets.

Availability

David Lichtenstein

5 years ago5/11/2021

Partners' capital status included in exports

This past week we've added partners' capital status to the partners export. We know keeping tracking this is important for funds and can be a pain to do manually. Our Partners' exports on Carta now included the following information:

These updates apply to both the fund level and 'All Partners' export. We've added the following columns to the partners export.

Where to find: Log in to Carta > Select a fund within your investment firm > Navigate to the Partners tab > Select 'Export partners'

Timing: Rolled out to funds using our Fund Administration services on April 30, 2021.

Audience: General Partners, CFOs, Investment teams.

Jordan Agnew

5 years ago5/10/2021

Building your compensation plan is easy with Carta Total Comp

Streamline your compensation processes and compensate with confidence on Carta Total Comp.

Whats new?

Easily build, manage and apply your compensation strategy across your entire employee base taking both geography and custom compensation bands into account.

To adjust your Plan settings, click on the Details link on the top left of the Scorecard page.

Geo Adjustment

You can now choose either Local or Uniform to choose the right approach for your fully remote, hybrid or in-office working arrangement.

Compensation Bands

The compensation bands settings enables you to customize the width of your company's target bands for each track. Defaults are 15% for Individual Contributors (IC), 20% for Managers, and 25% for Executives.

Availability

David Lichtenstein

5 years ago5/3/2021

Reconcile Stakeholder Updates

Announcing a new feature to manage Stakeholder Updates

Carta cap table admins can now see the updates that stakeholders make in their portfolio. Admins can easily review and approve these changes made by stakeholders to update the information in the company Stakeholders ledger.

Why is this important?

The most up to date information on a stakeholder can reside in an HRIS system, Payroll system, with an employee or in Carta.

Now, stakeholder updates brings each of these sources of information together, better enabling administrators to decide what information to store and use in Carta through the reconciliation tool.

What’s new?

When stakeholders update their address, contact email, or other info in their Carta portfolio, the new ‘From portfolio’ tab under ‘Stakeholder updates’ will surface these changes and allow the admin to quickly choose which updates to reflect in the company stakeholder ledger.

Navigate to stakeholder updates from the Stakeholder tab in the navigation

Quickly identify discrepancies across systems and choose which information to store on the ledger

Details:

For more detail on making Stakeholder Updates, please find more information here.

If you are interested in setting up an HR or Payroll integration, learn more here.

Who this is available to

All Carta cap table customers

Jessica Ray

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:

Get a pulse on your org through your company Scorecard tab

Benchmark any role in the Bands tab

Availability

Additional Resources

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

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:

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:

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:

What's new:

Timing:

Where 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:

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

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.

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

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
via the Company Summary Page
via the Company menu dropdown link

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:

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:

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:

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:

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:

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:

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:

Supported platforms:

What's new:

Timing:

Resources:

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:

What's new:

Timing:

Action required:

Resources:

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.

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.

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:

What's new:

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:

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:
Performance Condition - The name of the performance condition
Condition type - Whether the condition is event based, market-based, or non-market based
Vesting condition details - Any notes regarding this performance condition
Minimum payout - Lowest payout percentage, relative to the original grant amount
Maximum payout - Highest payout percentage, relative to the original grant amount
Vests post-termination - Whether the performance condition could be recognized during a PTEP period to allow vesting
Performance condition recognition status - Whether the condition was recognized or unrecognized
Recognition date - Date the condition is recognized
Actual payout percentage - The payout percentage, relative to original grant amount

You'll see these fields in these reports and are able to add them as optional fields in other custom reports:
Equity Awards outstanding Equity Plan Granted report Options outstanding report Securities Ledger

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