### Frequently asked questions about SOI updates
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| What type of updates can I make to my SOI?
You can currently make three types of updates to your **Statement of Investments (SOI):**
1. **Markup/Markdown** – When the price per share of your investment changes due to valuation adjustments.
2. **Realization** – When an investment exits and distributions are paid out (e.g., IPO, merger, acquisition, or recapitalization).
3. **Conversion** – When a convertible asset (e.g., a SAFE or Convertible Note) is exchanged for another type of asset, usually at a predetermined price (e.g., converting preferred stock into common stock). |
| When does markup/markdown take place?
**A markup may occur when:**
- A **new funding round** is raised at a **higher valuation** than your initial investment.
- A **409A valuation** by an independent appraiser results in a **higher valuation**.
- The company **experiences an exit event at a higher valuation** than your initial investment.
**A markdown may occur when:**
- A **new funding round** is raised at a **lower valuation** than your initial investment.
- The company reports **significant financial losses**, impacting its valuation.
- A **409A valuation** results in a **lower valuation**.
- The company is **no longer operating**. |
| How should I reflect conversions for SAFEs or Convertible Notes?
For **SAFEs and Convertible Notes**, please **contact your Fund Administrator** to ensure the conversion is booked correctly. Your Fund Administrator will record the conversion and adjust the price per share as needed. |
| I want to write off an investment. Is this a markdown?
A **write-off** is a **realization**, as it involves reducing the investment value to **zero**. Please reach out to your **Fund Administrator** with supporting documents, such as dissolution notices or official communication from company leadership. |
| What constitutes supporting documentation for a valuation or price per share (PPS) update?
- **For audited funds:**
- **Articles of incorporation** (detailing liquidation preferences, series pricing, etc.)
- **Stock purchase agreements (SPA)**
- **For non-audited funds:**
- The **SPA is strongly recommended**.
- In some cases, a **written notice from the founder** outlining the new valuation may suffice. |
| How do I update a valuation for a merger or an acquisition?
For **mergers and acquisitions**, please **contact your Fund Administrator** and provide supporting documentation. |
| What happens after I submit a valuation update request?
Once you submit a request and the appropriate documentation:
1. Your **Fund Administrator** will review and verify the details.
2. After approval, **portfolio updates and associated metrics** will be reflected in your dashboard. |
| Carta automatically updates asset valuations for public equity and crypto assets—how does this work?
Carta supports automatic valuation updates for **public equity** and **crypto assets**.
- We use your asset’s **identifiers** (Symbol, ISIN, CUSIP) to fetch market closing prices.
- When a price update is detected, we automatically **update the asset valuation** and record the necessary journal entries. |
| What market data sources does Carta use?
We integrate with the following market data sources:
- **Xignite**
- **Xpressfeed**
- **Twelve Data**
- **CoinMarketCap**
The auto-valuation process runs according to your **fund’s valuation cadence** ( **daily, monthly, quarterly, or annually**). |
| ##### Example of an automatic valuation update for public equity:
- Suppose your fund owns **100.25 shares** of Apple ( **AAPL**).
- Yesterday’s market closing price was **$150.45** per share.
- On the fund’s next valuation update, if the closing price rises to **$160.75**, Carta will:
- Update your asset valuation.
- Book a journal entry for the valuation event.
- The journal entry calculation would be:
**(100.25 × $160.75) − (100.25 × $150.45) = $1,032.58** | |
| How is the supporting documentation reviewed?
Carta has a dedicated **Deal Documents team** that reviews and catalogs all supporting documents for valuation changes to ensure accuracy and compliance. |
| I made an error in my SOI update—what should I do?
If you made an update in error, please **contact your Fund Administrator** as soon as possible to correct it. |
| Why is the price per share different from what I expected?
If the price per share appears different than expected, please **contact your Fund Administrator** for further clarification. |