## New suite of Employee management tools Starting today, Carta is enabling you to easily determine how much equity to grant employees and when to grant it via new tools such as the Hiring Planner, Refresh Grant Planner, and Equity Pool Forecast. Only Carta can help you: - Minimize manual work using a single platform - Take a proactive approach to thinking about impacts of equity grants on your equity pool - Conduct accurate forecasting using integrated benchmarks from Carta Total Compensation ### What’s new? With our new suite of Employee management tools, administrators have access to four new features: 1. **Manage Employees hub**: See the tools, required steps, and resources to help you hire, manage and retain your team. 2. **Hiring Planner**: Add potential new hires to see recommended equity and cash compensation based on market data, and export plans to share with your team and investors. 3. **Refresh Grant Planner**: See which employees are completing vesting soon, and plan out refresh grants to tenured employees to help retain top performers. 4. **Equity Pool Forecast**: Visualize your equity grants, hiring, and retention initiatives and their impact on your equity pool over time. ### Who is this available for? All Corporation founders and administrators who can view their company’s cap table. ### How do I use it? You can access these flows by going to your Carta account, and going to Manage Employees in the side navigation. From there, you can easily access all of the additional tools. [View a demo walkthrough of this feature](/content/events/forecasting-employee-compensation-accurately/index.html). ### Anything else I need to know? If there is anything you wish to see here, use the feedback form that will show up when you first visit the Manage employees page. If you have already responded and have additional feedback, or cannot find the form, you can reach out to your CSM or provide feedback via [Carta Community](https://community.carta.com/participate/productideas). ## Management Fee Improvements **What’s new?** We’ve improved our management fees to ensure you receive accurate offset calculations and experience a smooth approval process, every quarter. **What’s important about this change?** When approving management fees, you can now remain confident offsets are accurately accounted for with improvements to our offsets calculator. This means offsets will be properly allocated to partners in accordance with your LPA. Plus, spend less time reviewing management fees and approve now, but transfer later with our new scheduling feature. **How does it work?** You’ll receive an email and notification through your Activity tab that your fees are ready for review, this time 10 days prior to the new quarter. You’ll then review your management fee calculations. Not only did we simplify the view of your total fees due, but we’ve made it easier for you to understand previously allocated fees, fee savings, and reductions due to offsets or waivers. **How do I learn more or get help?** To learn more about Carta’s management fees feature, reach out to your Account Director or if you’re new to Carta, schedule a demo today. ## Faster, more accurate capital calls **What’s new?** We’ve redesigned our capital call experience to introduce self-serve capabilities, like direct edits and self-release, allowing you to get your time sensitive capital calls out even faster. But we didn’t just build for speed, we know the importance of an error-free capital call for both you and your investors, so we’ve introduced automatic health checks and pulled in critical details from your LPA to ensure accuracy in every detail. **What’s important about this change?** Gone are the days of waiting on your fund admin to review an urgent capital call, and the chance of human error. Now, you can remain confident you’re sending out an accurate capital call to investors, no matter the timeline. **How does it work?** Navigate to your Activity tab, select Call Capital, then select the type of capital call. We’ve introduced two additional options, “bring investors in line”, which means you want all of your investors to be at an equal percent of their commitments, and a “custom” option, if none of the options listed work for you. If calling capital Pro rata, select the investors to call, enter your amount, and the purpose of the capital call. Your called capital calculations will be updated in real-time in the summary module as you modify the page. **How do I learn more or get help?** To learn more about Carta’s capital calls, reach out to your Account Director or if you’re new to Carta, schedule a demo today. ## Step-by-step fund formations **What’s new?** We’ve enhanced our fund formations so fund managers can now access a self-serve, guided experience, all in the same platform they manage their funds. **What’s important about this change?** Whether you’re an emerging manager forming a fund for the first time, or an established GP looking to scale your firm, Carta makes the fund formation process quick and easy with an in-app, step-by-step experience. **How does it work?** You’ll be guided through the formation process step-by-step, starting with the basics like adding members to your fund and providing details like the name of your entities. After you enter your fund details, we’ll form your entities with Delaware and obtain your EIN, removing days of manual work by automating this process. The last step in structuring your fund is signing final documents like your LPA and Operating Agreement. All of the information you entered in the steps prior to this is what populates these documents here. Once all steps are complete and documents are signed, you can then get ready to invite investors to close into your fund. Carta’s data room and closings tool makes the closings experience smoother for both you and your investors. **How do I learn more or get help?** To learn more about Carta’s Fund Formation, reach out to your Account Director or if you’re new to Carta, schedule a demo today. ## Track capital calls, now from your phone **What's new?** Fund managers can now track the status of active capital calls, directly from their Carta Carry app. **What’s important about this change?** Gone are the days of following up with your fund admin to see the status of a capital call or confirm which investors are yet to pay. Now, you can easily track the status of active capital calls, including a view into the progress of your investors commitments, all from your phone. **How does it work?** After your capital call request has been submitted, you’ll be able to view the progress from both your home screen and your new Capital Calls tab. You can see an overview of the amount pending, pending investors, and due date. **Don’t have Carta Carry?** Download it on [iOS](https://apps.apple.com/us/app/carta-vc/id1664284852?uo=2) or [Android](https://play.google.com/store/apps/details?id=com.carta.gp.concierge&hl=en_CA&gl=US) today. ## View your entire portfolio, now from your phone **What's new?** Fund managers can now view investment performance for each of their portfolio companies, wherever they are. **What’s important about this change?** Whether you’re at your desk or on-the-go, you can quickly view a snapshot of your investments, or click into an individual investment for a more detailed view. **How does it work?** Click into the Investments tab, then view an overview of investments across your portfolio with metrics like cost, gain/loss, and what your ownership percentage is. For a more detailed view, click into an individual investment to see additional metrics like holdings value, gross IRR, and gross multiple. **Don’t have Carta Carry?** ## New Share Class Manager We are making it easier for companies to keep cap tables up to date after a new round of investment. **What’s new?** Our new Share Class Manager can extract information from Incorporation Documents and Stock Purchase Agreements, saving company administrators time when issuing investor shares after fundraising. ### Main Value Proposition The new Share Class Manager powered by document extraction saves you time, money, and makes sure your cap table data matches the legal documents after a new round. ### How do I use it? 1. Navigate to Securities, then Manage Share Classes 2. Click "Update Share Classes", then select "Add new filing date" 3. Upload documents, and wait on screen for the extraction 4. Review data and save ### Anything else I need to know? Any company can upload incorporation documents and have new share class data automatically ready for review, but only companies on their first priced round can upload Purchase Agreements. ## Standard Financial Reporting Carta’s Financial Reporting tools automatically generate the expense and minimum disclosure reports that auditors need so that you can easily comply with US GAAP and IFRS 2 accounting standards. Early-stage companies now have a Financial Reporting product designed just for them. Standard Financial Reporting includes automatic expense tracking for equity spending and an audit package with all the supporting evidence and documentation auditors need for stock-based compensation (SBC) expense reporting. Features included: - Automatic 409A valuations data ingestion - FMVs and Peers - Annual reporting - Audit package including SBC expense report, Minimum Disclosure report, and an audit guide detailing the assumptions we make and formulas we use - Premier audit support - Stock split support ### Who is this available for? Standard Financial Reporting is available to all Carta cap table customers, but specifically designed for early-stage companies preparing for their first few audits. ## Financial Reporting Vesting & Option Service Integration Financial Reporting is making an improvement to the way we pull in cap table data, achieving data consistency with the cap table products for vesting schedule tranche values. ### What's new? Previously, Financial Reporting used our own First-In First-Out (FIFO) allocation method to assign exercised quantities to ISO/NSO security type tranches. This method did not always match the cap table, as the logic slightly differed. In order to provide consistent data between cap table products, such as equity reporting, equity awards ledger, equity award details, and Financial Reporting, the Securities team created API services, specifically Vesting and Options for award and tranche level quantities. With Financial Reporting’s integration of the Vesting and Options API service, the tranche values displayed in Financial Reporting reports will be improved to match other Carta products, achieving data consistency. ### Who is this available for? All Financial Reporting customers will benefit from this new method Financial Reporting will be using to achieve data consistency with cap table products and equity reporting. More specifically, companies with ISO/NSO security types will have matching tranche quantity allocations with their cap table! ## Carta now supports board consents for SAFEs ### What's new? Get your board's approval while creating SAFEs on Carta with the new SAFEs board consent feature. Our customers can be rest assured their SAFE financings are governed properly. If you've created SAFEs on Carta before this release don't worry, our feature allows for ratifications of previously issued SAFEs so you're audit ready. ### Who's eligible? All companies can fundraise through SAFEs and leverage Carta's board consent feature! Users with Full Access permissions will be able to see the consent creation step. ### How can I access it? If this is your first time creating a SAFE, Carta can assist in efficiently creating a board consent using the information provided. You can skip this step and create one later through the Board Consent tool or select Yes and you will be walked through the process. ## QSBS eligibility support for RSAs This month we released QSBS support for RSAs. RSAs are a common form of founder equity and understanding their QSBS eligibility can be difficult due to the nature of their vesting and issuance. We now highlight QSBS eligibility in all RSAs where we have performed a QSBS attestation and the securities meet the criteria. The product experience for RSAs will look similar to the other securities eligible for QSBS which includes: - Holdings page experience and Shareholder letter - Information in the certificate modal (shareholder and admin) when QSBS eligible - Tooltip informing user QSBS eligibility is dependent on timely and proper filing of 83b ## Equity reporting suite: Stakeholder Ownership Details Enhancement ### What's new? To improve reporting for cases where stakeholders have a smaller percentage of ownership, we have enhanced the Stakeholder Ownership Details report to display the full amount of decimal places under the "Fully Diluted Ownership %" and "Outstanding Ownership %" fields. ### Why are we changing this? Previously, the ownership percentages in the Stakeholder Ownership Details report were limited to two decimal places. For example, if a stakeholder owned 0.0135% of the company, the report would have shown 0.01%. This made a small difference for large holdings but could be more significant for smaller ones, like those of employees. With this update, the report will now show the full ownership percentage including all decimal places, such as 0.0135%, ensuring greater precision in the reporting of individual stakeholder ownership. ### How can I access it? To access the Stakeholder Ownership Details report, navigate to Essentials > Run reports. ## Board consents in Carta are now linked to Option Grants and RSUs ### What's new? We've made it simple to find corresponding board consents in Carta when viewing Option Grants and RSUs on the cap table. When viewing an equity award on Carta, the new Board Details tab is available with details about the board consent that approved the issuance of the securities as well as a direct link to the board consent itself. ### Who's eligible? All companies on Carta can utilize the board consents tool. Users with Full Access or Company Editor can view board consents for their company and will be able to view the new Board Details tab in the equity details modal. Users without access to the Board Consent tool will not see the new tab. ## View benchmarks based on employee headcount ### What’s new? We have added a new peer group category to view salary, total cash compensation, and equity benchmarks – based on employee headcount. ### How do I view new benchmarks? You can view the new employee headcount-based benchmarks by visiting the Benchmarks page and selecting the peer group filter. The new peer groups will be in the dropdown alongside the current peer groups based on post-money valuation. ### Questions? If you have any questions or feedback about these new benchmarks, please reach out to your Customer Success Manager. ## Understand dilution and ownership with the new SAFE Modeling tool ### What's new? Understand how a SAFE financing round will impact your ownership when it converts in a future priced round. Our new SAFE Modeling tool removes the guesswork by providing current fundraising benchmarks, customized to companies in similar industries and stages. ### Why is it valuable? Dilution occurs the most in the earliest financing rounds. By not modeling ownership at the pre-seed and seed stages, early founders may find themselves more diluted than expected when it converts during a priced round. SAFE Modelings gives founders an easy to use tool to understand the impact of a SAFE round to their ownership. ### How does it work? To get started, navigate to Model your Fundraise, and select Model your SAFE. ### How to learn more or get help? To learn more about SAFE Modeling, check out this support article or reach out to your Account Manager for a demo.