How VC funds calculate their internal rate of return (IRR)
IRR, or internal rate of return, helps investors estimate their profitability. Learn more and download our free IRR calculator.
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Category: Equity education
Common stock vs. preferred stock
Common stock and preferred stock both offer different benefits to shareholders. In general, common stock is reserved for employees, while preferred stock is given to investors.
What’s new with ASC 820 guidance
Stephanie Wittrock, an ASC 820 expert, hosts a panel explaining what ASC 820 is and what’s changing with the new guidance. Carta offers both self and full-service ASC 820 services to ensure your fund is ready for audit.
What is fair market value (FMV)?
Unlike public companies where value is set by the market, private companies use independent appraisers to assess their value. Fair market value is the current value of a private company’s common stock and it determines the strike price.
Why do private companies run liquidity events?
A tender offer is a structured, company-sponsored liquidity event. Tender offers can be company share-buybacks or third-party investor purchases.
What is a tear sheet? (Free tear sheet example)
A tear sheet helps LPs understand how their investment is performing. Download our tear sheet example to get started today.
What to do before you raise a round
Founders and CFOs: here’s what you need to do before raising your next round and how Carta can help.
What are employee stock options?
Stock options aren’t actual shares—they’re the opportunity to exercise (purchase) a certain amount of company shares at an agreed-upon price. Learn more.
Watch our venture capital fund compliance webinar
Watch our webinar on fund compliance, common compliance mistakes, and regulatory changes.
