Is equity ownership in a startup simply fairy dust or a route towards real wealth?
Yeah, we're jumping into the deep end this morning.
Obviously, given the core mission of Carta is to create more owners, you may think my opinion just slightly biased. But as always, I'll ground this take in data.
Which data? The aggregate outcomes from 1.5 million U.S. employee equity-holders on Carta, visualized in our Employee Stock Options report: https://lnkd.in/gHiDpVCJ
Okay, some upfront context: 1. Lots of startups fail. Ownership in those startups is not worth very much (not always zero given acquisitions, etc, but you get it).
2. Equity ownership in early-stage startups is not granted outright. Employees must journey through various legal step and financial decisions 𝗯𝗲𝗳𝗼𝗿𝗲 they come to own a piece of their company.
3. That journey is not taken in a vacuum. Outside forces (macroeconomics, layoffs, personal financial footprints) play a major role in these decisions.
With all that said - 𝗲𝗾𝘂𝗶𝘁𝘆 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗰𝗮𝗻 𝗯𝗲 𝗮 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘄𝗲𝗮𝗹𝘁𝗵 𝗰𝗿𝗲𝗮𝘁𝗼𝗿. It is the job of a founder (and every Cartan, to be honest) to ensure their employees are making equity decisions with full knowledge of the mechanics.
Key stats from the above report:
46% of vested, in-the-money stock options remained unexercised when they expired in 2022.
Lots (i.e. more than 25%) of exercises happen in the 90-day period after an employee leaves. Are they all aware of this time crunch?
Allowing early exercise 𝗱𝗿𝗮𝗺𝗮𝘁𝗶𝗰𝗮𝗹𝗹𝘆 increases exercise rates. Have you as the founder considered this path?
Nearly 70% of employees believe their companies owe them equity education. And only 37% say they get it.
63% of employees say they don't feel confident about how to reduce tax liability for their startup equity.
Equity is not a guarantee. But it's a great way to align everyone towards a common goal. And given how ubiquitous it has become in startupland, we need to do a better job educating those that receive it on how to unlock its value.
#cartadata #equity #ownership #startups #stockoptions
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. 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. © 2026 Carta. All rights reserved. Reproduction prohibited.
