Founders Institute reposted this
Data Scientist | Ex-IBM | Follow for resources on venture capital and fundraising
More problems at Carta, an equity management platform valued $7.4 billion. 1. In July 2020 the former VP of Marketing filed a lawsuit claiming that she was underpaid by $50,000 annually and that her original equity grant was 1/3 of the equity paid to comparable employees. 2. Two other former employees filed gender discrimination and retaliation lawsuits. 3. Carta sued a former CTO and a former CPO over secret recordings. 3. Other 9 executives have left the company. 4. Customers, who are VC-backed startups, are experiencing problems. Karri Saarinen, the founder of Linear, has recently brought into public attention the fact that Carta has been cold-emailing angel investors (in this case someone who was not publicly disclosed) about selling Linear shares to their buyers. The case does not seem an isolated accident, other investors have been approached in December about secondary market shares. Carta Privacy Policy reads: "We may share personal information with acquirers and other relevant participants in business transactions (or negotiations for such transactions) involving a corporate divestiture, merger, consolidation, acquisition, reorganization, sale or other disposition of all or any portion of the business or assets of, or equity interests in, Carta (including, in connection with a bankruptcy or similar proceedings). We may share other information with third parties in other ways not described in this Privacy Policy when we have consent (either from users or business customers) to do so." 5. Now, Carta is shutting down its trading platform. The CEO Henry Ward wrote that it is about $3M, while "the captable business is about $250M/year, fund administration is about $100M, private equity is about $20M". #venturecapital #investing #startups