Automated Deal Pro Forma on Carta—the first solution to create deal-ready pro formas

Automated Deal Pro Forma on Carta—the first solution to create deal-ready pro formas

Author: The Carta Team
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Read time:  2 minutes
Published date:  27 February 2023
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Updated date:  10 May 2024
Carta’s deal pro forma round modeling tool automatically generates cap table projections for deals within minutes, not hours.

Today we released Carta Deal Pro Forma, making it possible to generate an accurate cap table projection for deals in minutes, not hours. It’s the first tool of its kind available to lawyers supporting startup founders on Carta. 

“Carta’s new pro forma tool gives founders and finance executives a way to quickly model the effect of a financing round,” said Jake Routhier, corporate innovation attorney, Orrick, Herrington & Sutcliffe LLP. “It can help them better approach negotiations with prospective investors.”

Prior to Carta’s Deal Pro Forma tool, the process of modeling—especially for the conversion of multiple tranches of notes or SAFEs—could take lawyers hours of work and cost founders thousands of dollars in legal fees. Today, it can be completed on Carta within minutes.

The tool uses existing cap table data to instantly fill in necessary fields, and then automates the computation for a precise, minimal-effort, deal-ready pro forma.

“Most startup founders need to raise capital through the sale of shares—also known as equity financing,” said Charly Kevers, chief financial officer at Carta. “But creating a deal pro forma, the first step in an equity financing, has been too tedious for too long. We’re excited about being able to solve this pain point, and follow through on our promise of building infrastructure for innovators.”

With this new tool, users can easily make incremental changes through various inputs (investment amount, pre-money valuation, etc.). Ultimately, this flexibility means founders can be more efficient and versatile in their modeling for investors, and understand implications for their ownership by running multiple scenarios with ease.

“With over 30,000 customers on Carta, we often hear about the challenges of company-building—pro forma modeling was one of them,” said Vrushali Paunikar, chief product officer at Carta. “So we set out to build a tool that was easy, efficient, and exportable. Today, Deal Pro Formas built on Carta serve as a reliable source of truth for all parties involved pre- and post-financing.”

“Carta’s Deal Pro Forma was built with top law firms across the venture ecosystem—including Perkins Coie;  Orrick, Herrington & Sutcliffe LLP, and over 100 individual attorneys,” said Natasha Arora, director of business development at Carta. “With the introduction of Deal Pro Forma, Carta is able to support equity planning not just as a record-keeper, but as a key facilitator of transactions.” 

To learn more and get started with Carta’s Deal Pro Forma tool, read our support article:

Carta Deal Pro Forma
Read more

Testimonials

“There are countless ways to model a financing round.  A lot of nuance goes into the calculations that founders don’t always know to watch out for.  Carta’s pro forma tool walks founders through that nuance in an easy, step-by-step process.  It presents the final model in a way that investors and counsel would expect.” — Montana Ware, Managing Associate, Orrick, Herrington & Sutcliffe LLP

“This is a game-changer for us. Carta has a well-earned reputation for making cap table management more efficient for startups, and this tool will make a key step in the fundraising process more efficient, too.”—Michael Glaser, emerging companies & venture capital lawyer.

The Carta Team
While we believe in assigning ownership at Carta, this blog post belongs to all of us.
DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a 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. ©2023 eShares Inc., d/b/a Carta Inc. (“Carta”). All rights reserved. Reproduction prohibited.