Partner Newsletter

Feb 2022 Law Partner Newsletter

15 April 2022
The Carta Team

Highlight

Read our new 2021 Carta Liquidity Report

Against a backdrop of surging growth in venture capital, Carta completed 129 liquidity programs in 2021—4x more than in 2020! Our 2021 Liquidity report breaks down the trends by deal terms, company stage, size, geography, industry, and more. We’ve found that offering liquidity is not just for later stage companies anymore—secondary transactions were distributed across private companies of all sizes and funding stages. Read about all of this and more in our report.

Product Updates

Introducing Carta Incorporation Resources for Founders

Do founders in your network have questions around incorporation? We have a free tool that will help them get started. Founders can complete this 5 minute questionnaire to get recommendations on:

  • Should they form as a C-Corp or LLC?

  • Which type of incorporation provider is right for them?

  • What are some law firms they can work with?

  • Where can they access additional information on how to build their company?

Help founders navigate these early decisions with ease and confidence.

QSBS Eligibility for Carta 409A customers

All Carta 409A customers including company admins, investors, and employees now get a free preliminary assessment for preferential tax treatment under the IRS Qualified Small Business Stock (QSBS) provision. The Carta platform notifies stockholders if they are potentially eligible, now or in the future, to pay zero federal capital gains tax on their stock (up to exempted amounts) so they can have informed discussions around QSBS with their tax advisors. | Learn more

SAFE Money Movement

We are rolling out end-to-end automation of SAFE wire payments via Carta. In the past, wire transfers from investor to companies occured off of the Carta platform. With our new SAFE Money Movement feature, investors can wire to Carta, and Carta will automatically disburse funds to the new portfolio company. This will decrease the time it takes for founders to close funds and will protect investors from handling wire information, reducing their cyber risk. Reach out to partners@carta.com for more information.

Round Modeling for Multiple Rounds

The Round Modeling tool now allows users to model a second financing round. This capability will help founders measure the final impact on the capitalization structure and/or dilution after multiple rounds. Reach out to partners@carta.com for more information.

IFRS Reporting Capabilities 

Carta’s financial reporting capabilities now support IFRS accounting standards; this is available for both non-US companies and US-based companies with international employees. Reach out to partners@carta.com to learn more.

Tips and Tricks

Onboard any Client to Carta through your Law Firm Dashboard with Direct Access

You can easily onboard any client to Carta through your law firm dashboard on the Carta platform with Direct Access. You can add your clients to either the free Launch plan (for companies with <$1M raised or 25 or fewer stakeholders) or a paid plan (for companies over the Launch threshold, or who are looking for a paid feature). | Learn more

Help your clients make informed compensation decisions with Carta Total Comp

As a law firm user, you can quickly pull salary and equity benchmarks for a specific role, level and region using our compensation database, and then forward that information to any recipient directly from the Carta platform. Use this tool to provide your clients with actionable recommendations on any compensation-related questions! Learn more

Connect with the Carta Community!

Have you ever wanted a direct line of communication with the Carta Product team? Now is your chance! Join Around the Table, a community forum for Carta users to log product feedback, connect with other Carta users, and share best practices. | Sign Up

Events and Webinars

Get a peek at 2022 VC ecosystem trends | Feb 16th @ 10am PT

Join our expert panel of startup founders, CFOs, and venture capitalists, as we discuss how your business can stay ahead of the trends in the VC ecosystem for 2022. On this webinar, we’ll be reviewing our findings from Carta’s annual ‘State of Private Markets’ report. | Register

Fund Formation and Deployment of Capital: Top Tips for VCs | Feb 24th @ 9am PT

On this webinar, a panel of experts from the VC ecosystem will provide tips around how to structure and form venture capital funds, how to navigate relationships between the fund and its limited partners, fund managers and portfolio companies, and how to approach deploying venture capital. | Register

CartaX Fireside Chat: How Secondaries Impact 409A Valuations | Mar 3rd @ 11am PT

We’re experiencing a huge wave of momentum for private market liquidity. CartaX has received an influx of questions around how secondary liquidity events impact a company’s 409a valuation. Join us on this virtual fireside chat to get answers from our experts on the CartaX and 409A teams. | Register

SXSW Startup Crawl by Capital Factory | Mar 11th from 5 pm – 9 pm CST

Come meet your Carta team at SXSW. We’ll be participating in Capital Factory’s 2022 Startup Crawl and hope to see you at our booth! To book time with a Carta Business Development rep at SXSW in Austin, please email partners@carta.com

Other News from Carta

Investor Services

Have a venture investment fund practice? We have a full suite of services and experts to support fund and SPV launch, LP management, fund administration, portfolio company valuations, and more. Streamline your client onboarding process and receive referrals for new clients. | Learn more

Carta for Private Equity and LLC

We’re expanding the functionality of our new equity management platform for Private Equity and LLC companies. The tool provides a seamless user interface to streamline and automate cap tables; run exit modeling through a waterfall, centrally manage documents (e.g. K-1s), and track distributions. Multi-entity or multi-member LLCs are easily tracked through one simple dashboard. The platform also allows PE and law firms to view their consolidated portfolio or client base. | Learn more