Carta (software company)

Last updated
eShares, Inc.
Carta, Inc.
Industry Software
Founded2012;12 years ago (2012)
Founders
  • Henry Ward
  • Manu Kumar
Headquarters 333 Bush Street,
San Francisco, California
,
U.S.
Key people
  • Henry Ward (CEO)
  • Manu Kumar (Chairman)
Number of employees
1,618 (2022) [1] [2]
Website carta.com

eShares, Inc., doing business as Carta, Inc., [3] is a San Francisco, California-based technology company that specializes in capitalization table management and valuation software. The company digitizes paper stock certificates along with stock options, warrants, and derivatives to allow companies, investors, and employees to manage their equity and track company ownership. The company also operates CartaX, a private stock exchange.

Contents

Carta was founded in 2012 by Henry Ward and Manu Kumar.

History

Carta was founded as eShares in 2012 by entrepreneur Henry Ward and serial investor Manu Kumar. [4] Ward became CEO and Kumar became the company's Chairman. [5] The company launched when the founders saw a need for venture-backed companies to electronically manage equity, issue securities, and track their cap tables. [6]

In August 2015 eShares raised a $17 million Series B, led by Spark Capital. [7]

In October 2016 eShares partnered with cloud-based human resources company Zenefits to add equity management to Zenefits' platform. [8]

On September 1, 2017, eShares acquired competitor Silicon Valley Bank's valuation business Silicon Valley Bank Analytics (SVBA). [9] In October Carta raised a $42 million Series C, led by Menlo Ventures and Social Capital. Matt Murphy of Menlo Ventures and Arjun Sethi of Social Capital joined the board of directors. [9] In November, CEO Ward announced in a blog post that eShares would start doing business under a new name, Carta. [10]

In December 2018 Carta raised $80 million in series D and reached a valuation of $800 million, led by Tribe Capital and Meritech Capital Partners. [2]

In May 2019, the company raised $300 million in a Series E round at a $1.7 billion valuation, led by Andreessen Horowitz. [6] In November, the company received coverage for announcing new employee separation policies, including approving departure pay for all employees, while removing separation agreements and legal documents. [11] The company also was one of the first to extend option exercise windows for departing employees, as employees became more concerned about their equity stakes. [11]

In 2020, a series F funding round valued the company at $3.1 billion. [12] In 2020, Lisa Whittaker was hired away from the investment bank UBS to clean up what she called Carta's "toxic, boys club" culture. [13]

In January 2021, launched a private stock exchange called CartaX, to allow employees and shareholders to sell private shares before an IPO or acquisition. In February, the company sold just under $100 million of its own stock on CartaX. [12]

In September 2022, Carta acquired UK competitor Capdesk for an undisclosed sum. [14]

In October 2023 a lawsuit was filed in San Francisco by former Carta employee Alexandra Rogers alleging she was groped at a work happy hour event by Chief Revenue Officer Jeff Perry in June 2022. [15]

Products and services

Carta develops software to help companies maintain their capitalization tables, which show a company's percentages of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other owners. [7] The company's software also helps customers digitally manage their valuations, portfolio investments and equity plans. [2] Business Insider referred to the company "the NASDAQ for private companies". [11]

Carta's software allows company founders to issue digital share certificates to investors, employees, and others who qualify for stock options. It also develops a centralized dashboard, for issuers to keep track of stock ownership, the timing and pricing of shares issued, and which owners are willing to sell. [16] Venture firms also use Carta's software to manage their portfolios. [16]

The company also operates the CartaX private stock exchange, a way for employees and shareholders to sell their stocks before the company goes public or is acquired. [17]

The company's focus on capitalization tables led to a series of equity gap studies called Table Stakes. The reports highlight the equity gaps between employees and founders based on gender, race, ethnicity and geography in a variety of industries, including high tech. [18] [19]

Operations

Carta is headquartered in San Francisco, California. As of August 2022, the company was reportedly tracking over $2.5 trillion [20] in company equity, and had facilitated $13 billion in secondary-market sales. [20] Its customers include Slack and Affirm. [4] Henry Ward is the company's CEO. [5]

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References

  1. ↑ "The Cloud 100 2022". Forbes .
  2. 1 2 3 "Cap table management tool Carta valued at $800M with new funding". TechCrunch. December 27, 2018. Retrieved December 28, 2018.
  3. ↑ "Privacy Policy" . Retrieved 2023-10-21.
  4. 1 2 Kauflin, Jeff (February 4, 2019). "Fintech 50 2019: The Newcomers". Forbes . Retrieved April 19, 2021.
  5. 1 2 Hall, Gina (August 14, 2015). "Private stock-tracker eShares raises $17M to fund global expansion". Silicon Valley Business Journal. Retrieved April 19, 2021.
  6. 1 2 Loizos, Connie (May 6, 2019). "Carta was just valued at $1.7 billion by Andreessen Horowitz, in a deal some see as rich". TechCrunch. Retrieved April 19, 2021.
  7. 1 2 Loizos, Connie (April 18, 2015). "EShares, Now Valued At $77 Million, Looks Far Beyond Silicon Valley". TechCrunch. Retrieved April 19, 2021.
  8. ↑ Lynley, Matthew; Mannes, John (October 18, 2016). "Zenefits opens up to third-party developers and launches a suite of new HR tools". TechCrunch. Retrieved April 19, 2021.
  9. 1 2 "eShares raises $42 million to manage equity compensation and investments". TechCrunch. Retrieved 2017-10-11.
  10. ↑ "eShares is now Carta". Carta - Always Be Helpful. November 6, 2017. Retrieved March 1, 2018.
  11. 1 2 3 "Carta's CEO explains why he's doing away with draconian employee separation agreements and eliminating militaristic terms like 'firing' and 'termination'". Business Insider. December 5, 2019. Retrieved April 19, 2021.
  12. 1 2 "Carta's startup liquidity service CartaX conducts first transactions on its own cap table". TechCrunch. February 4, 2021. Retrieved May 12, 2021.
  13. ↑ At unicorn startup Carta, a culture of absolute fealty to an erratic and vindictive CEO, employees say Business Insider, Darius Rafieyan, October 24, 2023
  14. ↑ "US equity management fintech Carta acquires UK's Capdesk | Sifted". sifted.eu. Retrieved 2022-09-02.
  15. ↑ San Francisco Unicorn Startup Carta Hit With Multiple Lawsuits, Exposés San Francisco Standard, Joshua Bote, October 25, 2023
  16. 1 2 "Meet the start-up making it easier to buy and sell shares in private companies". CNBC. October 11, 2017. Retrieved April 20, 2021.
  17. ↑ "Chernova's Take: CartaX Competes With the SPAC Boom". Wall Street Journal. February 10, 2021. Retrieved July 19, 2021.
  18. ↑ "Pay Gap? For Women at Startups, the Equity Gap is Worse". Wall Street Journal. September 18, 2018. Retrieved April 20, 2021.
  19. ↑ "Carta's Table Stakes 2020 Report and the Implications for Boards". The Boardlist. December 10, 2020. Retrieved May 6, 2021.
  20. 1 2 "The next evolution of Carta | Carta". 26 August 2022.
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