Websites using Carta

Okay, let s break down Carta, covering its overview, revenue, alternatives, pricing, and customer care details.

Carta Overview

• What it is: Carta (formerly known as eShares) is a software platform and service provider focused on equity management. It helps companies, investors, and employees manage cap tables, valuations, ESOPs (Employee Stock Option Plans), and equity-related compliance. It aims to digitize and streamline the often-complex world of private equity.

• Core Functionality:

  • Cap Table Management: Centralized, digital management of a company s ownership structure, including stock issuance, transfers, and options.
  • ESOP Management: Administration of employee stock option plans, including grant tracking, vesting schedules, and exercises.
  • Valuations: 409A valuations (independent appraisals of a company s common stock for tax purposes), which are required for granting employee stock options.
  • Fund Administration: Services for venture capital funds, including accounting, reporting, and compliance.
  • Scenario Modeling: Tools to model the impact of different financing rounds or exit scenarios on the cap table.
  • Compliance: Features to help companies stay compliant with securities laws and regulations related to equity.
  • Carta Total Comp: A feature that allows companies to streamline the compensation and equity planning process within one platform

• Target Audience: Startups, private companies, venture capital firms, and their employees.

• Key Benefits (claimed by Carta):

  • Increased transparency and accuracy in equity management.
  • Reduced administrative burden and costs.
  • Improved compliance.
  • Better communication and collaboration between companies, investors, and employees.
  • Facilitation of liquidity events (e.g., secondary sales).

Revenue

Carta s revenue model is primarily subscription-based. They charge companies a recurring fee based on factors such as:

• Number of stakeholders: The more shareholders, option holders, and other equity holders a company has, the higher the price.
• Company stage/valuation: Early-stage companies generally pay less than later-stage, highly valued companies.
• Features and services used: The more modules and services a company uses (e.g., valuations, fund administration), the higher the price.

Revenue Estimates: Carta is a private company, but reliable estimates place their annual recurring revenue (ARR) in the hundreds of millions of dollars.

Alternatives

The equity management software space has become more competitive. Here are some notable alternatives to Carta:

• Pulley: A popular alternative focusing on cap table management for early-stage companies. Often considered more user-friendly and potentially more affordable for smaller companies.

• Shareworks by Morgan Stanley: Geared toward larger, more established companies, often with public offerings in mind.

• Nasdaq Private Market: Offers cap table management, secondary market trading, and liquidity solutions. Caters to later-stage companies and institutional investors.

• Captable.io: A Cap table tool for early-stage companies.

• Ledgy: An equity management platform focused on providing global solutions for businesses

• Vestd: A UK-based equity management platform that helps businesses manage their equity schemes.

• Global Shares: A comprehensive equity compensation management platform that provides global solutions for businesses.

Key Considerations When Choosing an Alternative:

• Company Size and Stage: Some platforms are better suited for early-stage startups, while others are designed for larger, more complex organizations.
• Budget: Pricing varies significantly.
• Features Required: Determine which features are most important to your company (e.g., cap table management, valuations, fund administration, employee portal).
• Ease of Use: Consider the user-friendliness of the platform.
• Integration with other systems: Does it integrate well with your accounting software, HR systems, etc.?
• Customer Support: Evaluate the quality and responsiveness of customer support.

Pricing

Carta s pricing is not transparently published on their website. You need to contact them for a custom quote. However, here s a general understanding:

• Subscription-Based: You pay a recurring fee (monthly or annually).
• Tiered Pricing: Pricing is structured in tiers based on the number of stakeholders and the features you need.
• Factors Influencing Price:
  • Number of stakeholders (employees, investors)
  • Company valuation
  • Features selected (Cap table, 409A valuations, ESOP management, etc.)
  • Support level required

General Price Indications (Keep in mind this is based on market research and may not be completely accurate):

• Early-stage startups (seed/Series A): Can range from a few hundred to a couple thousand dollars per month.
• Later-stage companies (Series B+): Likely to be several thousand dollars per month, potentially much more.

Important Note: Always get a formal quote from Carta (and its competitors) to accurately compare pricing. Negotiate!

Customer Care Details

Carta provides customer support through various channels:

• Help Center/Knowledge Base: A comprehensive online resource with articles, FAQs, and guides.
• Email Support: You can submit support requests via email.
• Phone Support: Typically available, especially for higher-tier customers. Availability and response times may vary.
• Dedicated Account Managers: Larger companies may be assigned a dedicated account manager for personalized support.
• Training and Onboarding: Carta typically provides onboarding and training resources to help new customers get started.

Customer Care Reputation:

• Mixed Reviews: Customer feedback on Carta s customer service is often mixed. Some users praise their responsiveness and expertise, while others report difficulties getting timely and effective support.
• Complexity: The complexity of equity management can sometimes lead to misunderstandings or frustration, regardless of the software platform.
• Account Management: The quality of support often depends on the specific account manager assigned.

Tips for Getting Good Support from Carta (or any similar platform):

• Be Prepared: Clearly articulate your issue, provide relevant details, and include screenshots if possible.
• Use the Help Center: Check the knowledge base first to see if your question has already been answered.
• Document Everything: Keep records of your support requests and communications.
• Escalate if Necessary: If you re not getting the help you need, don t hesitate to escalate your issue to a higher level of support.
• Be Patient and Professional: Maintain a professional and respectful tone, even when frustrated.

In summary, Carta is a leading equity management platform, but it s crucial to carefully evaluate your specific needs and compare it to alternatives before making a decision. Pay close attention to pricing, features, and customer support reputation.