4 years ago1/27/2022

Portfolio Overview Redesign

Users with holdings in private and public companies can now view their holdings details directly from the Portfolio screen for easy access.

Who this affects?

Shareholders with holdings in private and public companies.

What’s new?

With an objective to provide insightful experiences, we’ve redesigned the Portfolio Overview screen to surface important holding details for each company. This redesign introduces usability enhancements by eliminating extra clicks and effort required to find the information needed to view and understand equity.

We know things like the quantity of option grants, vesting schedule, and values of securities are some of the most important metrics to have top of my mind when reviewing your portfolio. In the Portfolio Overview, each private company card will now present the following information with the ability to view further details when clicked:

• Details of your holdings in each company and their vesting schedule
• Summary of your securities
• Current FMV if you have holdings in the company or have exercisable options
• A vesting progress bar highlighting the number of options exercised in comparison to the amount granted

Each public company card will now present the following information with the ability to view further details by clicking on the company name:

• Market Value
• Total number of shares held
• Total holdings value
• Net holdings value

Hira Zahid

4 years ago1/24/2022

Carta Web now has Section 6039: Form 3922 tax form generation

What's new?

Carta Web now supports the generation of Form 3922 for Employee Stock Purchase Plans in the Company Administrator view. Companies that would normally have access to the Compliance tab, can now request access to Section 6039 from their Customer Success Managers. Form 3922 forms are due to stakeholder portfolios by January 31, 2022. By enabling this functionality in Carta Web, administrators are now in control of the Form 3922 generation and distribution, similar to Form 3921 for Incentive Stock Option Exercises.

NOTE: This feature can be enabled upon request from companies that have an Employee Stock Purchase Plan.

From the IRS:

Corporations file this form (3922) for each transfer of the legal title of a share of stock acquired by the employee pursuant to the employee's exercise of an option granted under an employee stock purchase plan and described in section 423(c) (where the exercise price is less than 100% of the value of the stock on the date of grant, or is not fixed or determinable on the date of grant). How to Use

1. To generate Form 3922, navigate to Compliance > Section 6039.

NOTE: TCC is not required to generate Form 3922 Copy B for employees.

2. Click Generate.

3. Select the Effective Year of the report.

4. Review any missing information, check off the box to confirm company data, then click Next: add contact info. If any information is missing, complete the information, then return to this stage.

• If Company tax data is not complete:

1. Navigate to Company > Settings.
2. Click into the Profile tab.
3. Enter Tax ID, TCC (required to generate Copy A, but not required for Copy B) and address.

• If Stakeholder tax details are not complete, update missing data under the Stakeholder details tab of the same Form 3922 page

1. The names, addresses, and SSNs can be edited individually by clicking Edit to the right of the stakeholder’s row.
2. The stakeholder details can also be updated in bulk via Stakeholders > All stakeholders page. Review these instructions to bulk update stakeholder details.

5. If the missing data was entered in, return to the Compliance > Section 6039 page and click Generate to click through the steps to proceed and add company contact information. The company contact is formatted into the electronic Copy A .txt file that will be uploaded to the IRS site.

Click Generate Form 3922 to begin the generation of the files.

6. Refresh the page after some time if you see a spinning wheel or navigate away and return later.

7. Once generated, click Download reports for the tax year to download a .zip file to your local drive that contains all necessary data for Copy A (efile), and Copy B (statements).

The .zip file will be split out into the following three files:

• efile will be a specially formatted electronic .txt file.

NOTE: Do not edit this file. Only download and upload to the IRS FIRE site. If any data needs to be updated, repeat the initial steps for the same filing tax year to regenerate the reports and download the updated files.

• statements should be delivered to all holders who acquired stock through an ESPP by the January 31st deadline and can be delivered electronically on Carta by clicking the link to Deliver participant statements.

For any filing questions, contact your tax advisor.

Who this affects

Public and Private Market companies with an ESPP.

Timing

This feature can be enabled on demand by reaching out to our support team or Customer Success Managers.

What's Next

The product team will be enhancing Form 3921 functionality to bring it more in line with the new Section 6039 admin experience.

Vibhu Mahajan

4 years ago1/24/2022

Improved Public Exercising Experience

Option exercising with Public companies is now easier than ever.

The exercising experience for public companies has been improved. The exercise request is now a coherent workflow guiding users through each step and providing key information about the exercise. With this detail, users can be more confident with their selection at each step of the exercise request. If there are issues with the exercise, clearer banners explain how Carta calculates share amounts and market prices.

Who this affects: 🇺🇸 Public US companies

What's new:

• New experience for exercise requests:

• Added explanations of exercise transaction methods

  • Clearer confirmation of address and payout method
  • Improved order details with indicators on maximum eligible options and clear explanation of order types
  • Incorporated review of taxes withheld and reminder of potential for additional taxes owed at end of the year
  • Summarized the exercise request clearly laying out the cost and transaction details so users understand what will be needed

• Cashless exercising reflects issuer imposed trade limits

Action required: No action required

Timing: Released to 100% of all public companies on Jan 24, 2022

Bryan Wells

4 years ago1/24/2022

Pre-filled W-9s in LP Closings Tool

What's New

LPs subscribing to Funds and SPVs using Carta's Closings Tool can now E-Sign a pre-filled W-9 while filling out subscription documents.

Having LPs submit a tax form is an important part of the closings process for any Fund or SPV to ensure tax teams correctly prepare LP K-1s. We received feedback from LPs about the friction of printing, signing, and uploading W-9s and wanted to streamline the process.

How it Works

For Individuals

For U.S. based LPs subscribing as an Individual, we can now optionally pre-fill a W-9 for them to review and E-sign in just three clicks. The W-9 is pre-filled based on the information the LP already provided as part of their subscription.

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For Partnerships and LLCs

For LPs subscribing as a partnership or through a LLC we'll ask some additional questions to ensure we are accurately representing the LPs federal tax classification on the W9.

With the initial release of this product we will not be pre-filling W-8s or W-8BEN-Es for non-US LPs but will still allow them to upload their own form.

Who this affects

This is now available to any LPs using Carta's Closings Tool. The Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents.

Spencer Holton

4 years ago1/21/2022

Set Your Target Market Position

What's new?

Target Market Percentiles

Carta Total Comp will now show target data for the 25th, 50th, and 75th salary and equity percentiles.

How do I change my target market percentile for my compensation bands?

You can update your target market position to use the new percentiles either by:

1. Visiting the Plan page and clicking on the "Create plan" button in the Active Plan window. The Create Plan window contains a section called “Market position by job area” where you can specify your target salary and target equity percentiles.

2. Visiting the Bands page and clicking “Edit” under Target criteria. Once in edit mode, you can change the target market position by selecting the Percentile dropdown.

Market Position by Job Area

Carta Total Comp users will now be able to set their organization's target market positioning by element of compensation (salary + equity) and job area to make sure they're getting a view of market competitiveness that supports their overall talent strategy.

How do I update my Plan to define my market position by job area?

You can update your existing compensation philosophy by:

1. Visiting the Plan page and clicking on the "Create plan" button in the Active Plan window.

2. Under "Market position by job area" you will see a table containing your default salary + equity positioning.

3. Select the "+" icon to create additional market positions by job area.

4. Each additional market position will allow you to specify the job area, target salary percentile, and target equity percentile.

How does Market Position by Job Area affect the Employee Scorecard?

The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. A plan that specifies a market position for a job area adjusts the target rate for all employees in said job area. These changes can be previewed by selecting the “Save and preview plan” button on the Create Plan page.

Benchmarks version 2022-01-21

• Our market estimates now include measures of the 25th and 75th percentile by job area, level and peer group.
• We've updated the Salary bands for all job areas to reflect market changes and improvements to our benchmarking model.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

2. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

What’s next?

We will be expanding our benchmarks to include salary and equity data for the following Engineering Specializations: DevOps, Frontend, QA, and Software Engineering.

Jeffrey Glusman

4 years ago1/21/2022

Funds Can Now Review and Request SOI Updates in-App

What’s new?

Valuation updates can now be submitted directly in Carta!

We kicked off EoY reporting by launching Schedule of Investments (SOI) review emails with in-app flows for Fund Managers approve their valuations, markup their investments, or request other updates right in Carta. This is the first step in a set of functionality for making the quarterly and annual reporting process easier than ever.

How it works:

Rather than Fund Admins having to comb through investment valuations for every entity and curate one-off email threads with Fund Managers to ask for reviews and updates, they can now kickoff these emails with just a few clicks in Carta, and easily track where each entity is in the reporting process.

Fund Managers will be sent a link to their SOI for review and approval, where they can approve on the spot or request changes directly in app. For markups or markdowns, they can go through a fully in-app flow to complete the updates. They no longer need to go download their SOIs and itemize every change through email, to send back to their Fund Admin.

Any approvals or requests for changes will automatically be queued for Fund Admins to review and push through, while markups and markdowns that pass health checks will push through updates directly and be routed to Carta's Deal Docs team, so they can review and catalogue supporting documentation.

Who does this impact?

Fund Admins now have quicker, more efficient ways to send out SOIs to kickoff financial reporting, and track where each of their entities are in the process. They can spend less time keeping track of multiple email threads and keeping mental lists of which assets are ready to go and which need to updated.

Fund Managers can also view their SOIs by fund and directly request changes at any time, within Carta as needed, ensuring asset valuations are up to date throughout the year.

What’s next?

The team is working to add more in-app methods for funds to easily to keep their investment valuations up to date, such as note conversions, further reducing the time delays from back and forth emails, and ensuring better expediency and accuracy for valuation updates.

Whitney Knowlton

4 years ago1/19/2022

Equity Value Settings

What's new?

You can now select how equity value is displayed in the Scorecard and communicated to employees in Total Rewards in the new Equity Settings section in the General Settings page.

How to use

Navigate to Settings in the top navigation and then click on the General Settings tab on the left-side navigation.

In the Equity Settings section, there are two options:

• Equity share price - Set the value of the share price either using the Last Preferred Price or set a custom value.
• Equity value calculation - There are two options to choose from to determine how equity value is calculated:

1. Net equity value - The in-the-money value of all equity grants (i.e. net of any exercise costs). RSUs assume a strike price of zero. This is the recommended setting for most situations.
2. Notional equity value - This is the gross value of the equity (i.e., shares granted times the equity share price).

NOTE: When using the Net equity value option on the Bands page, Total Comp will always display the notional (face) value of equity according to your set equity share price as exercise costs are only taken into consideration for individual equity awards.

Prior to this update, all equity value was calculated only using the notional value method. We recommend customers review compensation philosophy with their teams to make the determination on the best methodology for your unique circumstances.

David Lichtenstein

4 years ago1/12/2022

IFRS Initial Release - Financial Reporting

What’s new

Companies using our newest version of the financial reporting tool can now report following International Financial Reporting Standards (IFRS).

This is the first release of our IFRS reporting that includes:

1. Tranche based valuations

2. FIN28 amortization

3. Correct relationship valuation methodology (differs from US GAAP)

4. Stakeholder country field added to reports

5. Disclosures

6. Stock-based compensation expense journal entry

7. Report error validations specific to IFRS reporting

Later releases will include:

1. In-app custom assumption overrides

2. Forfeiture rate by grouping

How it works

When going to create a new expense scenario, there is now an additional step where users can select which reporting standard they want that scenario to follow. Users have the ability to create multiple scenarios to support both IFRS and US GAAP.

Once the scenario is created users can create both SBC expense reports and disclosure reports that follow the standard and give supporting calculations.

Who this affects

Private and public companies using our new financial reporting tool.

Timing

Available for legacy V1 IFRS users and beta customers. If you have a customer that is interested in being a beta user, reach out to Jess Carthey via slack.

GA will begin with the second release which includes in-app custom assumptions.

Jess Carthey

4 years ago1/11/2022

Total Comp Benchmarks Version 2022-01-10

What’s new?

We've updated the Salary bands for the Engineering, Data, and Research job areas to reflect market changes and improvements to our benchmarking model.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

2. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

What's next?

On January 21, we will be launching a new enhancement to the Plan feature that will let you set your target market position (25th, 50th, or 75th percentiles) for salary and equity by job area. Stay tuned for this major release!

Jeffrey Glusman

4 years ago12/21/2021

Employee ID Matching Tool

What’s new?

There is a new way for Cap Table Admins to manage Employee IDs.

This is more than just an import; it is a matching tool that will make it easier to match the Employee ID with the indented Stakeholder in Carta.

Why is this important?

The Employee ID can clearly indicate that employee #123ABC on the HRIS or another system is the same as the Stakeholder #123ABC on Carta.

The Employee ID matching tool will compare Employee ID, First Name, Last Name, and email from an external source to the records in Carta. If all of the data between the two sources match exactly, then the Employee ID will be automatically saved in Carta. If some of the data matches, like Last Name and Email but not First Name, then those matches will be shown as a pending match some the Cap Table admin to confirm if the records are the same across two systems.

How it works

This tool is available to a user with the role of Legal admin or Company Admin. It is under the Stakeholders dropdown > Stakeholder Updates > Employee ID Matching.

Step 1: Add External data

Download the template, and populate it with employee IDs, First Name, Last Name and email from the Employee ID source system (typically an HRIS or Payroll system). Upload this data into Carta as a CSV file, or Copy/paste directly into the matching tool.

Employee ID, First Name, Last Name, and email are all required for this upload.

Step 2: External Data Source

Once the data is uploaded, it will run through the automatic matching process. If the data is the same between the external source and Carta, then the Employee ID will automatically be updated.

Step 3: Review Pending Matches

If the data from the external source matches the data in Carta, then approve the suggested match. There is also an option to select a different Stakeholder or to clear it.

Step 4: Review and save

Jessica Ray

4 years ago12/20/2021

1099B Cost Basis Report available to Company Admins

What’s new?

We are releasing a report to all Private Market companies for administrators to review their certificate cost basis and original acquisition dates. This report will allow administrators to view cost basis data prior to the delivery of 1099B tax statements to stakeholders by mid-February.

How it works

This in-app report is available by navigating from Capitalization -> Reporting -> Form 1099b cost basis report.

Administrators will be able to view columns like stakeholder details, certificate ID's, quantity of shares sold, date acquired (original acquisition date), proceeds, gain/loss, and including various cost basis fields:

• cost_basis_total_certificate = full value going back to the original certificate
• cost_basis_per_share = cost basis of total certificate / total shares quantity
• cost_basis_sold_certificate = cost basis per share X sold shares quantity

From this report, Issuers can identify which certificates need to be changed and/or excluded from tax filing, and will have the opportunity to correct the data until late-January.

Who does this impact?

This report will be available to individuals with role permissions of Company Admin, and including Company Editors.

What’s next?

In the next month, Carta's Liquidity team will be reaching out to ensure that data has been reviewed and is considered approved by Issuers for generating 1099B statements. Stakeholders will be able to access tax statements in their portfolios by mid-February.

Vibhu Mahajan

4 years ago11/18/2021

New "Firm Management" page

What’s new?

Today, we are rolling out a new homepage for Carta Fund Admin GPs. The new Firm Management page is the first step in a series of new features we’ll be implementing to simplify the GP experience on the platform.

How it works

Instead of landing on the Firm Overview page when logging in, GPs will now see the new Firm Management page. From this page GPs can easily:

• See an overview of all their entities’ high-level metrics
• Search & navigate to any of their entities
• Access fund detail pages like Fund Performance, Partners, and Investments
• Filter and sort their entities

Who does this impact?

The new homepage will be available to all Carta Fund Admin GPs. This has no impact on the LP experience, LP Portal-only experience, or free-firm experience.

What’s next?

Over the next few weeks, the team will be working on adding more functionality and features to the page. Stay tuned for more details

Kali Borkoski

4 years ago11/10/2021

Returning LP Experience in Closings

What's New

We simplified the experience for returning LPs filling out subscription documents in Carta’s Closings Tool. With most of their information pre-filled, LPs can fill any remaining info & sign subscription documents with just a few clicks.

How it Works

When returning LPs are prompted to fill out subscription documents, we will pre-fill their documents if they’re investing with the same entity or individual they’ve previously filled out subscription documents for. This is especially useful for LPs that have investments on Carta both as an individual and through multiple entities like trusts or LLCs.

This is a big win for fund managers that are launching multiple funds or SPVs with the same LP base that are looking for a streamlined experience for their LPs.

Who this affects

Spencer Holton

4 years ago11/9/2021

Tracking Share Class Changes

Private market issuers that go-live on or after 11/09/2021 can now track updates to company share classes’ rights and preferences as they are changed over time. This feature will roll out to other issuers in the next few weeks.

Users with the Legal administrator permissions will be able to make changes to the share class details. Users with the Company editor or Company viewer permissions will only be able to view the share class details.

Experience Overview

1. Navigate to Securities > Shares.

2. Click Manage share classes and select Create/edit share classes.

3. The in-app spreadsheet loads in view-only mode, to prevent accidental input, which is indicated by the grey rows.

4. Create a new share class by clicking on the related button on the top-right of the screen.

5. To make edits to the share class details, click the Edit to the right of the AOI version date and name. If editing from the active AOI version, Admins will have the ability to reflect both a clerical error or amendment

6. If you are editing a past AOI version, Admins will only be able to make edits because of a clerical error.

7. If reflecting an amendment, Admins will be able to upload the related Articles of Incorporation (AOI) or select one from the Library page. In addition, a name can be added to the AOI version.

8. Click Continue to save.

9. At this point, the Admin can make changes in the spreadsheet. The side-panel will expand to show helpful content related to the selected cell.

Cells that are painted light gray cannot be edited because the data may be in-use, a calculated value, or not applicable. Respectively, examples include share class names, the calculated outstanding value, and conversion price for common shares. Reference your AOI or contact your legal partner if you need help filling out this spreadsheet.

7. After edits have been completed, click Finish editing and save.

Carta will check your entries for any errors and provide actionable messaging to help you make corrections.

1. Review the summary of changes, then click Confirm and save. No email notifications are sent due to the changes.

2. Admins can navigate between AOI versions with the AOI version selector, which will show the filing date and version name as dropdown options.

Carta will be making improvements to tracking the company’s cap table, financing history, and reporting in the next few months to incorporate time-versioned share class information.

Have questions? Read about FAQs in our support article.

Alex Chen

4 years ago11/4/2021

409A valuation data shared with Investors

What's new?

Portfolio companies can now share financial and cap table information with their Investors when their 409A valuation is complete. If you've been shared this data, you can view and download it directly from your Carta account.

How does it work?

When your portfolio company accepts their Carta 409A valuation, we ask them if they want to share some of the data used in the valuation with their Investors to help their investors stay up to date on the company's financial situation and to help streamline some of the jobs needed to be done on the Investors side, such as the ASC 820 valuation.

The portfolio company will select which Investors to share the data with:

If you were one of those Investors that was shared the 409A data, you will then receive an email notifying you of the new document that has been shared and will be able to see it in your Documents tab under that portfolio company in Carta!

What information will be shared?

Historical financials

Information about the company's last twelve month revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) as well as the previous twelve months revenue and EBITDA. Since the 409A valuation is a valuation of the company at a point in time, the data used is as of a specific date. For example, Meetly conducted their 409A valuation as of 03/01/2019 (this is their valuation date). For the historical financials, the company provided the last twelve months (03/01/2018-2/28/2019) and the previous last twelve months (03/01/2017-02/28/2018).

Summary financial forecast

In addition to their historical financials, the company will also share the projected next twelve month's revenue and EBITDA. Using the same example above, this would mean Meetly has shared 03/01/2019-02/29/2020 financial projections for revenue and EBITDA.

Cash and Debt

The company will also share the cash and debt balances as of their valuation date. In the example above, this would mean Meetly has shared their cash and debt balances as of 03/01/2019.

Summary level ownership information

Some cap table information will also be made available, which includes access to share class level information but will not contain any information about share holders. Here's what you'll see as an investor:

Industry sector

Information about what industry the company operates in will also be shared. This is the industry information that was used to conduct the 409A valuation and may represent the current industry the company operates in. At Carta, we have preset industry lists that are used the 409A valuation. Should "N/A" appear next to industry sector for your shared data, it means the 409A valuation used a custom industry set and this information will not be made available.

Time to exit

This represents the number of years until the company expects to have an exit event. 409A valuations are capped at 5 years for the time to exit so keep this in mind when reviewing this estimated exit term.

What information will NOT be shared with me?

This document will not contain any information about the concluded FMV, latest preferred price, any rights & preferences the preferred share holders have, strike prices or purchase prices, and any information about a specific shareholder.

Is this available to me?

The feature is available to any investor that has been shared the 409A valuation data. If you aren't seeing a document in your account, it may be that your portfolio companies either have not received a new 409A valuation since the feature has been released or have not shared the data with you yet.

EJ Jacoby

4 years ago11/2/2021

LP Status Tracker in Closings

What's New

We launched a new LP tracker in our Closings Tool so fund managers can easily track the status of each LP filling out subscription documents. We clearly show exactly where the LP is in the process and provide instructions for what each LP needs to do to progress and finish their subscription.

How it Works

In the Closings Tab of the entity you’re fundraising for, you’ll see one these six statuses assigned to each LP:

• Prospect: LP has been added but the fund manager has not invited them to fill out documents yet.
• Invited: LP has been invited to Carta but has not started filling out their documents.
• In progress: Investor has started to complete documents.
• Investor Signature Pending: Investor has completed documents and requires two or more signatories. Not all signatories have signed yet.
• Submitted: Investor documents are ready for review.
• Countersigned: Documents are complete and the investor has been admitted to the fund.

To get more detail about the specific LP, you can click on each status and get more detailed information about the LPs status such as:

• If they are using the help of someone else such as a wealth manager to fill out documents
• Who still needs to sign if there were multiple signatories designated by the LP
• What actions does the LP need to take to complete their subscription
• Timeline of the LPs interactions with the closings process

Additionally from this modal you can manage LP access to your fundraising data room and see who has been interacting with the information in each data room.

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Additional Resources

Check out that walks through the step-by-step process of adding LPs to the closings tool.

Is this available to me?

This is now available to any fund managers using Carta's Closings Tool. The Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents.

Spencer Holton

4 years ago10/27/2021

Adjust taxes for option exercises

What’s new

Companies can now adjust taxes for option exercises previously approved in Carta.

Legal administrators can navigate to the Exercises ledger (Transactions > Exercises) and select "Adjust taxes" within a ledger row dropdown to find the new tool:

How it works

The "Adjust taxes" tool will not be available for option exercises in the "Requested" status since option exercise approvers can adjust taxes as part of the exercise approval workflow.

For ACH option exercises already approved by the company or for company-entered manual exercises, the "Adjust taxes" tool will be available for use.

After a legal administrator selects "Adjust taxes" from the Exercises ledger, they'll see the following modal:

The legal administrator will be asked to provide a reason for the adjustment. Next, the following actions are available:

• Un-check a box next to a tax type to remove it from the option exercise
• Re-check a box to re-add a previously removed tax type to the option exercise
• Update the specific tax withholding amount in the "Adjusted" column
• Select "Add another tax type" to add a new tax type to the option exercise

Note that new tax types can't be added from this modal. If you'd like to add a new tax type to the exercise, add it first in the Tax rules page (Compliance > Tax rules) and then come back to the "Adjust taxes" tool to add it to the option exercise.

Once the adjustment has been saved, both the company and the stakeholder will see a blue banner when viewing the option grant. The banner contains information about the newly adjusted tax amount and exercise cost in addition to when the adjustment was entered in Carta:

Adjusted tax amounts will also be reflected in the "Exercised and settled report" and the "Tax withholding report" (Capitalization > Reporting).

For more information, check out the support article for the new "Adjust taxes" tool: https://support.carta.com/s/article/adjust-taxes-option-exercises

Who this affects

Private and public companies that issue option grants.

Timing

Available to all companies now.

Vince Lo

4 years ago10/14/2021

Option exercise settings for exercises initiated and settled on Carta

• Managing option exercising is now easier than ever.

International optionholders of US companies can now exercise online via wire transfer to Carta. As a result, all US companies can now settle exercises through Carta, for both ACH and wire transfers payments. Carta conveniently manages payment reconciliation and payment issues such as insufficient funds or overpayments. This new feature is controlled via the new Transaction Settings page.

Who this affects:

• 🇺🇸 US companies, public and private

What's new:

• 💸 All exercises are settled with Carta- company admins will no longer need to mark exercises as paid. No matter where optionholdersers are located, Carta will receive 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.
• ⚙️ Clear transaction settings - company admins control option grant exercisability easily in one central location within Transaction Settings, under Company Settings.
• ❌ Auto-cancel unpaid exercis es - A wire exercise is automatically cancelled if unfunded or underfunded for 30 days after admin approval.
• ✉️ 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.

Action required:

• Configuring Transaction Settings will enable access to online wire exercises for international optionholders.
• Navigate into Company > Settings > Transaction Settings
• Click Set up to accept the terms and reconfigure your company account
• Accept the terms and conditions and enjoy the feature! You will be able to:
  • Change the bank account information
  • Easily turn exercises ON and OFF, without Support intervention
  • Select the types of securities that may be electronically exercised

Timing:

• Rollout begins Oct 14, 2021
• Rollout to reach 100% of all customers by the end of 2021

What if the company decides not to enable the tool?

The current company or transaction settings will not be impacted. Remember that enabling Transaction Settings is required for international optionholders to submit online wire exercises!

Resources:

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

4 years ago10/5/2021

Qualified Small Business Stock (QSBS)

What’s new

Companies using Carta for 409A will now be additionally assessed for qualified small business eligibility at no extra cost to the company.

Certificates issued by a qualified small business as determined by Carta will have a "QSBS" tag in the product to indicate that the shares represent Qualified Small Business Stock (QSBS). The goal of these tags is help stakeholders make more informed selling decisions.

The IRC’s definition of a qualified small business is restrictive yet vague and open for interpretation at the edges, so potential holders of QSBS should consult their tax advisor before making decisions to sell and claiming the QSBS tax benefit.

How it works

Based on company-provided information during the valuations process, Carta will assess the following criteria for qualified small business eligibility:

• Company's gross assets are $50M USD or less
• Company is an active business
• Company is a C-corp
• Company does not operate in excluded industries

If a company is identified as a qualified small business, a new badge will appear in the 409A dashboard:

If a stakeholder receives a certificate from a qualified small business but hasn't yet met the 5 year holding period for QSBS, they'll see a "QSBS eligible" tag in their portfolio:

Drilling into the security, the stakeholder will see some additional information about the QSBS status of the certificate:

Stakeholders who have held shares issued by a qualified small business for 5 years will see a "QSBS" tag in their portfolio instead:

Additional Resources

For detailed information about QSBS in Carta, please refer to our QSBS support article.

Who this affects

Companies using Carta for 409A and their stakeholders.

Timing

• Available now to 50 randomly selected 409A customers
• General availability for all 409A customers coming in two weeks

Vince Lo

4 years ago10/1/2021

Bulk Add LPs to Carta's Closings Tool

Whats New

We've made it easier to quickly add LPs to Carta's Closings tool. Using a new spreadsheet in Carta you can now easily input details about each LP or simply paste information from another spreadsheet or tool.

How it Works

There's a new "Bulk add partners" button on the closings tool that will open up the new spreadsheet where you can add LPs. You'll need to fill in the following information about each LP:

• Partner name: The name of the individual or entity that is subscribing.
• First and Last Name: This will be the name of the primary contact for the LPs commitment. The LP can always update this and add additional contacts when they’re filling out subscription documents.
• Email: The email address of the individual who will be filling out subscription documents for the partner.
• Commitment amount: The amount the LP will be committing to the fund or SPV. You must enter a commitment amount but this can be updated at any point prior to the LP signing.

Additional Resources

Here's a support article that walks through the step-by-step process of adding LPs to the closings tool.

Who this affects

This is now available to any fund managers using Carta's Closings Tool. Our Closings Tool gives LPs a quick and easy way to fill out Fund and SPV subscription documents.

Spencer Holton

4 years ago9/16/2021

Partially Canceling Option Grants

What’s new

Legal administrators in Carta can now partially cancel an option grant in Carta. Partially canceling an option grant will reduce the number of outstanding shares and return the shares back to the option pool.

How it works

You'll find the partial cancellation tool by navigating Securities > Equity awards and clicking on the ledger dropdown for the specific option you'd like to partially cancel:

First, you'll be asked to provide an effective date for the partial cancellation. A partial cancellation is an amendment to the option grant, and the effective date will determine when the amendment takes effect in the company's as-of date reporting.

Next, select the cancellation method, which determines how the partial cancellation will affect the vesting schedule for the option grant. Because a partial cancellation reduces the outstanding quantity of the option, Carta needs to know from which tranches the shares should be canceled.

Last in, first out cancellation method

For some situations, the issuer or their legal counsel may not specify the way in which the amendment will affect the vesting schedule. Issuers can select the last in, first out cancellation for the vesting schedule, and Carta will cancel shares starting from the future-most tranche and move up the vesting schedule until the specified quantity has been canceled.

Custom cancellation method

For situations in which the issuer or their legal counsel want to affect the vesting schedule in a specific manner with a partial cancellation, issuers can select the "Custom" share allocation method - this approach provides flexibility and allows the issuer to cancel shares from any tranche. The in-app spreadsheet allows legal administrators to first reflect the partial cancellation in a spreadsheet application outside of Carta and then copy/paste the resulting vesting tranches back into Carta.

After selecting "Review and confirm" at the bottom of the page, verify the cancellation quantity and other information to save the partial cancellation.

Additional Resources

For more information around the limitations and best practices for the partial cancellation tool, please refer to this support article.

Who this affects

The new partial cancellation tool is available to the legal administrators in all of Carta's private market customers.

Timing

Available now.

Vince Lo

4 years ago9/16/2021

View Public Company Holdings on Mobile

Users with holdings in public companies will now have the ability to view their holdings for both public and private companies straight from the Carta iOS app. Shareholders can now track market values, view total holdings value and more.

Who this affects

Shareholders with holdings in public companies.

Supported platforms

• iOS (Android coming soon)

What's new

With an aim to provide functional and streamlined experiences for shareholders, we’ve brought the ability to view public holdings on the Carta iOS app. Public company cards will now be present among private companies on the home screen. The following information will be displayed for each public company card with the ability to view further details when clicked:

• Total number of shares held
• Total holdings value
• Net holdings value

Hira Zahid

4 years ago9/15/2021

Use Cap Table Access to Set Rule-Based Permissions for All Stakeholders

We are making it easier for companies to keep employees, investors, and other stakeholders informed about their holdings and company changes.

Companies have historically been able to grant viewing permissions to their stakeholders via our Cap Table Sharing page and features. This experience, however, was burdensome for many company administrators who found themselves having to change sharing settings as new stakeholders were added to their cap table or existing stakeholders changed their relationship to the company, such as an employee leaving the company or an investor exiting their position.

With our new Cap Table Access page, company administrators can designate what type of information they want to share with their different stakeholders and set rules based on these preferences. By setting permissions by rules instead of a stakeholder-by-stakeholder process, we make it easier for company administrators to get the right stakeholders the appropriate information and reflect their information sharing philosophy.

Companies can choose to enable a group of stakeholders with a specific level of access based on their relationship to the company. For example, companies can choose what information founders, investors, employees, and former employees, and other stakeholders access on Carta. We’ve renamed, updated, and simplified our access levels to Restricted, Basic, Advanced, and Full Details. We include a “Recommended” level for different relationships (e.g. Investors = Advanced) to help guide founders and other company administrators on setting up their Cap Table Access settings based on user feedback.

We’ve also added a new rule where former stakeholders--those who no longer have an active investment or holding in the company--will be downgraded to Restricted automatically. This means that as stakeholders enter and exit the cap table, their respective level of cap table access will update automatically.

New Cap Table Access page: Group levels

We know that sometimes it’s important for company administrators to create experiences specific to a single stakeholder or user. The new Cap Table Access feature allows companies to set overrides for specific stakeholders in the “Individual levels” tab. We also provide information on that stakeholder’s relationship and holdings information.

New Cap Table Access page: Individual levels

To help ensure company administrators set access levels that best fit the needs of their stakeholders, our access level guide is clickable from either the Group Level or Individual Level views of the new Cap Table Access page.

Access level guide

We appreciate our users’ feedback on how to make this page clearer and easier to use. We hope these improvements save company administrators valuable time and help them mirror their company information sharing philosophy in our software.

Who is this available for?

The cap table sharing page is available via a limited release to select Carta companies. In the coming weeks, we will begin to migrate additional companies to the new Cap Table Access feature set. This new product is not limited by subscription tier.

Companies with the new Cap Table Access features enabled can visit Stakeholders > Cap Table Access.

If you’d like to enable the new Cap Table Access settings for your company, you can also contact us.

Amanda Domingues

4 years ago8/31/2021

Instant KYC for Non-Individual LPs Completing Subscription Documents

Non-individual Limited Partners who complete subscription documents on Carta can now be KYC’ed instantly.

What’s New

This release is a follow-up to our KYC for Individual LPs feature. If your fund leverages Carta’s KYC/AML service and you have non-individual Limited Partners (LPs) completing subscription documents in Carta, these LPs can now be instantly KYC’ed on the platform. Carta instantly KYCs the LP's control person and beneficial owner(s) in addition to the LP entity itself.

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

Limitations

• For this release, only US-based LPs are supported for instant KYC. Future releases will extend support to non-US LPs

How it Works

1. As an LP completes their subscription documents, non-individual LPs (for funds that avail of Carta’s KYC/AML service) will see a dedicated Know Your Customer section. Upon landing here, LPs will first be asked if their control person and beneficial owner(s) are all US persons -

2. If the control person and beneficial owner(s) are all US persons, then the LP will be shown forms to enter KYC information for these individual(s) -

3. Finally, the LP is also able to upload any entity formation documents and photo IDs here:

4. Once subscription documents are signed by the LP, the following are instantly KYC'ed: the LP entity, control person, and beneficial owner(s). If all pass KYC, this is immediately reflected in the Carta UI and General Partners are notified to countersign -

Timing: Rolled out to all on Aug 31, 2021

Audience: US-based Limited Partners, General Partners

Steven Camina

4 years ago8/30/2021

VC Firm Access Update

What’s new

We're updating firm permissions to be more granular for larger firms, while keeping them easy to manage for emerging managers.

Fund Admin clients on Carta will now have the ability to grant users on their accounts access to only the information they need: Investments, Limited Partner information, Fund Admin, and Fund performance data.

How it works

Admins on a VC firm account have the ability to add users and update their permissions. Permissions are controlled under Settings on a firm account. Non-admins can go to the Settings page to see who the admin on their account is.

Basic VC firm accounts on Carta will be able to grant users Admin or Investments access.

Firms that use Carta for additional services have the ability to grant users additional permissions for each fund in the firm.

Defaults

For each user, an Admin can grant them “default” access to the firm. Defaults will automatically give users these permissions for new funds that are added to the account.

Additional Resources

• Support article

Who this affects

This update affects all VC firm users on Carta. Users will not see a difference to their existing access with this change, but going forward Admins can update permissions.

Timing

We are rolling this out to a small number of firms starting on August 30 and plan to roll out to all firms within a few weeks.

Ashley Chang

4 years ago8/24/2021

[Early Access] Live Chat Support

Carta now offers Live Chat Support to Early Access Users.

Who does this affect?

Law firm users and companies in Carta Launch

What’s new?

Users can now opt to chat live with a Support Agent, in addition to the traditional Phone and Email Support.

They can simply access the Help Center by clicking on the dialog balloon at the bottom right of the screen, where the Live Agent option will be available.

After accepting the terms and conditions, the user will be connected to a specialized Support Agent.

This rollout builds upon Carta's investment in a modernized approach to how our customers receive assistance in-app, enabling easy access to multiple engagement types to fit the context of the question, including:

• Chat
• Voice and video
• Co-browse
• Screen-sharing

All within the Help Center in-app!

Nathalia Wichan

4 years ago8/23/2021

Get Help!

Carta is making it easier to get the answers our users need, when they need them. Introducing our one-click Help Center.

Who does this affect?

Company administrators and viewers, law firm users, and personal portfolio holders

What’s new?

Users can now access Carta's Help Center in one click by going to the dialog balloon icon at bottom right of the screen, where they can ask questions about the platform's workflows, products and features.

Carta's Natural Language Processing technology will find the most helpful Support Articles for that query within our knowledge base, and provide users with the right answer for their questions.

In the event a question needs to be escalated to a Support Agent, Carta users can also raise Support Cases without leaving the page, and they will have multiple support options available to fit their engagement preference.

Email Cases created through this workflow leverage user's session data and context to quickly route the Case to Subject Matter Experts, leading to faster resolution times.

When Phone is selected as the preferred method, the most appropriate phone number is displayed based on the user's type and question, ensuring users get connected to the right Support Agent for their need, without inconvenient call transfers.

Learn more about Carta's Help Center

Nathalia Wichan

4 years ago8/16/2021

New Carta Launch onboarding for early stage founders

What’s new?

Early stage founders can get self-onboard onto Carta Launch faster than ever before. Founders with up to $1M raised or 25 stakeholders or fewer can now create an account and onboard company data with ease, speed, and confidence for free.

Carta Launch is live on Product Hunt! We'd so appreciate your upvote!

How it works

Sign up and create your account

1. On carta.com/launch, click “Get Free Access”
2. Fill out a simple form with your company information to create your account.

Guided onboarding

1. We designed the new onboarding experience to be friendly and guide you through each step

2. With just Incorporation Documents and Common Stock Purchase Agreements, you can enter information about your Company, Founder Shares, and Users & Roles to complete your onboarding.

3. Once you’ve reviewed and activated your account, you’re all set to get started on Carta.

4. Your free Carta Launch plan is suited to fit your immediate fundraising and equity needs and set your company up for success as it scales.

Additional resources

• For step by step instructions for how to get started find our video guide here.
• For more information about what is included in Launch, check out this video or check out our most recent blog post.
• For any additional questions, please reach out to partners@carta.com or get help through our in-app support.

David Zhang

4 years ago8/9/2021

Request for Information Dashboard Improvements

What’s new?

Portfolio Insights clients now have a more granular view of the requests for information they send to their portfolio companies. The request for information dashboard has been upgraded to include document type and status for each portfolio company, as well as a timestamp of the portfolio company’s last submission.

Along with making the request for information (“RFI”) dashboard more granular, it’s possible to configure exactly what is requested of each company, lessening the burden on portfolio companies and ensuring a streamlined process. Click here to learn more about RFI configuration.

It’s also now possible to cc multiple people on RFIs, ensuring anyone and everyone from your team is kept apprised of the quarterly collection process.

Questions?

For more information regarding the RFI dashboard, or Portfolio Insights, please reach out directly to your Portfolio Insights account manager or portfolio-kpi@carta.com.

Keyvan Firouzi

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:

• Integration with fundraising and subscription document experience
• Easy control of access for GPs
• Tracking documents viewed and visits to data room by user
• Watermarking documents
• Ability to require NDA signing

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)

   2. Financials
   3. 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

• iOS & Android

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:

• Total number of options held, number of options vested and exercised
• A vesting progress bar comparing the number of vested and exercised options to the total options granted
• Summary of securities displaying types and quantities for each held

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

• Option exercises, including the effect of any shares sold to cover option cost and taxes
• RSU settlements, including any shares sold or withheld to cover taxes
• Shares sold
• Shares transferred in to Carta
• Shares transferred out from Carta

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

• ESPP purchases
• Sale of ESPP stock
• ESPP shares transferred in
• ESPP Shares transferred out

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:

• Option cashless sale or hold transactions facilitated by outside brokers (where shares are sold or held outside of Carta)
• Option exercises where shares are delivered or held outside of Carta
• RSU settlements where shares are sold or held by outside brokers

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

• Fund administration clients

Supported platforms

• iOS (Android coming soon)

What's new

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

• The home screen now provides a summary of active capital calls with the ability to view individual call details.
• Navigating to a capital call allows you to view further call and investor details along with a full investor list which can be filtered by Paid and Unpaid calls.
• The Fund Details page now also provides a capital summary and the ability to view a list of Active, Drafted, and Completed calls.

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

• For this first release, only individual (as opposed to entity) LPs are KYC’ed. Future releases will support KYC for entity (non-individual) LPs as well. This includes KYC for the LP entity, LP control person, and LP beneficial owners
• For this first release, only US-based LPs are supported. Future releases will extend support to non-US LPs

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

• Total investment count
• Fully realized investment count
• Partially realized investment count
• Unrealized investment count

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

• 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.

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:

• Called capital
• Uncalled capital
• Percent of capital called
• Prepaid balance
• Outstanding balance

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.

• Loca l: When selected, all employees will have their target compensation automatically adjusted to the local cost of labor for their location. You can also set a minimum threshold to ensure that employees' target compensation are not set lower relative to the top metro market rate for their roles. We recommend setting the threshold to 80%.
• Uniform : Using this option, all employees' target compensation will be adjusted to the market rate for a single location.

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:

• 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

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.

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