At Carta, we believe that simplifying formations and lowering the barriers to venture capital will create and empower a new generation of diverse VCs to support diverse founders who strive to make technology even more inclusive and impactful. We’re always searching for ways to solve problems for our investor clients and to ensure our customers have an excellent experience by combining our best-in-class technology with superior service.
To address a major pain point for investors, in Q1 2021, our team of product managers, engineers, designers, and venture experts focused on automating and facilitating the entity formations and closings process. We built fund and Special Purpose Vehicle (SPV) formations, launched Pre-Close Advisory Services, brought subscription documents (subdocs) in-app, and enhanced the capital call experience. Here’s a bit about each of the new products and features we demoed in our Q1 Product Webinar.
We believe that simplifying formations and lowering the barriers to venture capital will create and empower a new generation of diverse VCs to support diverse founders who strive to make technology even more inclusive and impactful.
Fund and SPV Formations
Forming a fund or an SPV doesn’t need to be complex, costly, and involve manual coordination across multiple vendors and partners. With Carta, you can focus on building your investment strategy while we handle your back office needs with a combination of trustworthy service and enterprise grade software.
- Simple and efficient formations: We help you to form the fund entities, find a registered agent, and obtain a tax ID. Customize and send your legal docs in-app.
- Professional support at every step: Manage accounting and taxes with our experienced fund admin team and tax partners. Work with our pre-close advisory services team to guide your formation.
- Seamless experience from formation to administration: We can seamlessly support your full fund lifecycle: formation, closing, your first capital call – all the way through fund administration. When you work with Carta for fund administration, your fund formation is included.*
- Simple and efficient formations: Customize and send your legal docs in-app.² Carta forms the entity, secures a registered agent, and obtains a tax ID.¹
- End-to-end SPV management: Call capital, administer your fund, and perform distributions with Carta. Work with our experienced team and tax partners to manage accounting and taxes in-app.
- A better LP experience: Manage your LPs with our robust platform. LPs can sign subscription documents and track their investments.
Set up your fund the right way with our pre-close advisory services. With us, you’ll get:
- Operational and Advisory Support: From management company budget preparation to term sheet guidance to capital guidance, our team will support you with operational planning and advisory services.²
- Team of industry experts: Our professional team has years of experience working with venture capital and service providers. Get pre-close advisory and introductions to our network of vendors for banking, tax, and other needs.
- Aligned with your timeline: Your success is our success. Our team will support you through your first capital call.
Closings with in-app subscription documents²
We know that the closings process with manual subscription documents sent back and forth via email can be frustrating and costly. We’ve templatized and digitized subscription documents, bringing them into the Carta app. As a result, you can close with a few clicks. We offer:
- Standard, customizable subscription document templates with set fields
- The ability to send subscription documents in-app
- Automated communications between co-signatories
As we continue to invest in the GP/LP experience, we are making this process even more seamless. For instance, once an LP has signed a subdoc on Carta, their information will now be pre-filled in future subdocs for a quick and painless closing experience.
Capital Call Enhancements
Streamlining capital calls and communicating with your LPs’ needs to be a timely and transparent process so you can stay up to date on your fund’s capital. We’ve simplified capital calls so you can call capital quickly—all within Carta’s platform. With Carta you can:
- Streamline the kickoff process: See capital commitments, call capital, and get approvals – all within Carta.
- Enhance your LP communications: Notify LPs via automated emails and in-app notifications for a timely and seamless experience.
- Stay on top of your capital call: Monitor your capital call with our status dashboards and automatically send reminder emails in-app.
Capital Call Lines
We’ve simplified the capital call line of credit with clear and predictable pricing and standard, transparent terms for all of our customers. Plus, you can use our platform to track and manage your loan directly in the app. With us, you get:
- Capital when you need it: You’ll always have access to your capital call line. Funds can be wired same-day*.
- LP management: Call capital on a more predictable basis instead of sporadically. LPs can anticipate your capital calls and plan more effectively.
- Streamlined service providers– Bundle fund administration and capital call loan providers to make your back office more efficient.
Next quarter, we will continue the conversation about how to improve the fund administration process by diving into two areas:
- Building a more connected and auditable fund administration experience
- Improving the GP and LP experience
Check out our recap video to learn more.
In case you missed it: Questions and Answers from the Q1 product webinar:
To see additional product changes and what we’ve been working on, check out our release notes here. We hope these new products and features make your experience on Carta even better. We’d love to hear from you. If you have any questions or suggestions about our product, reach out to us.
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*Amounts paid for fund formation services will be credited to your first year of fund admin fees, if purchased within 12 months.
¹ Entities are formed in the state of Delaware.
² Carta’s legal templates are provided for your reference only and are not intended to serve as legal advice. We recommend that you consult an attorney licensed in the relevant jurisdiction as well as tax and financial professionals before finalizing your legal documents.
DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta, Inc. (“Carta”). This communication is not to be construed as legal, financial, accounting or tax advice and is for informational purposes only. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.