Finance Knuggets

Jan 14, 2024

I recently learned that Carta, a company known for its cap table management software for startups, has made the decision to exit the startup stock trading business. This move comes after a controversy regarding its access to customer cap table data. While this decision is not expected to impact its valuation or investor expectations, it has led to an increase in demand for alternative cap table options from companies like AngelList and Pulley. These companies are also waiving fees for Carta customers to ease the transition.

The controversy has sparked discussions and promotions of alternative cap table options in the Silicon Valley community. Companies like AngelList and Pulley are seeing significant interest from startups looking to switch from Carta. Additionally, Fidelity/Shoobx has been promoting its cap table services through marketing emails. This news is significant as liquidity events for late-stage startups become more common, and the success of these marketplaces in managing secondary transactions will be key in easing tensions between buyers, sellers, and companies.

In conclusion, the news underscores the impact of Carta’s decision to exit the startup stock trading business and the ripple effects it has caused in the industry. It also highlights the growing demand for alternative cap table options and the challenges faced by companies in managing secondary transactions. This is an important development in the startup and financial technology space, and it will be interesting to see how the industry evolves in response to these changes.

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