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Carta
Software for managing cap tables, valuations, and liquidity for private companies

Revenue

$442.00M

2024

Funding

$965.41M

2021

Details
Headquarters
San Francisco, CA
CEO
Henry Ward
Website
Milestones
FOUNDING YEAR
2012

Revenue

Sacra estimates that Carta reached $442M in annual recurring revenue (ARR) in 2024, a 19% increase year-over-year from $373M in 2023.

In 2023, cap table management and 409A valuations accounted for approximately $250M in ARR, fund administration about $100M in ARR, private equity solutions about $20M in ARR, and Carta's secondary marketplace about $3M ARR.

Today, Carta's cap table platform serves about 35% of all venture-backed startups, with over 200 venture funds and 35,000 startups using the platform.

Valuation

Carta was last valued at $7.4B in a $500 million Series G round led by Silver Lake in August 2021, bringing total funding to approximately $1.29 billion.

The company has received investment from firms such as Andreessen Horowitz, Spark Capital, Menlo Ventures, Meritech Capital, and Tribe Capital.

Product

Carta is a financial infrastructure platform that digitizes and automates equity management, fund administration, and private market transactions.

The platform functions as both the legal system of record and operational backbone for private companies managing ownership structures.

Carta replaces traditional paper-based equity management with a real-time digital cap table that updates automatically as transactions occur.

For example, when a startup issues new shares to employees or raises a funding round, those changes are reflected directly in the cap table without requiring manual data entry. This is possible because Carta operates as an SEC-registered transfer agent, allowing it to legally issue and track securities rather than maintaining a spreadsheet-based representation.

The platform also supports comprehensive equity lifecycle management. Companies use Carta to conduct 409A valuations for tax compliance, utilizing automated workflows that pull data directly from the cap table to produce audit-ready reports.

The total compensation module enables startups to benchmark salaries and equity grants against market data sourced from thousands of companies on the platform.

For investors, Carta offers fund administration services that automate traditionally manual accounting processes. Fund managers can track portfolio performance, generate LP reports, and manage capital calls through integrated workflows connected to their portfolio companies' cap tables.

The platform supports tasks ranging from quarterly reporting to tax preparation, replacing manual accounting efforts with automated processes.

The latest product suite is designed for private equity funds, offering waterfall modeling, portfolio analytics, and institutional-grade reporting tools.

These solutions build on the platform's core infrastructure while incorporating advanced financial modeling capabilities tailored to larger, more complex investment structures.

Business Model

Carta operates a B2B SaaS model with network effects connecting companies, investors, and service providers in the private markets ecosystem.

The company generates revenue through annual software subscription fees and transaction-based charges for services such as 409A valuations and fund administration.

The primary growth mechanism begins with cap table customers who invite their investors to the platform via free portfolio access.

As investors onboard more portfolio companies to Carta, they are increasingly likely to adopt fund administration services to streamline operations. This creates a reinforcing cycle where each new company customer introduces additional investor relationships, and each investor customer drives referrals to new companies.

Pricing is structured to scale with customer growth and operational complexity. Early-stage companies pay lower annual fees for basic cap table management, while costs rise as companies expand, raise larger funding rounds, and require advanced features.

Fund administration fees are tied to assets under management and service complexity, resulting in higher revenue per customer from institutional clients.

The business model benefits from high switching costs once customers are integrated into the platform.

As Carta serves as the legal transfer agent, switching to a competitor involves re-issuing securities and updating investor records across potentially hundreds of stakeholders. This dynamic supports strong customer retention and allows for consistent price adjustments over time.

Carta has transitioned from a pure software provider to a hybrid model that combines technology with professional services. While the platform automates many traditionally manual processes, the company employs accountants, lawyers, and analysts to manage complex transactions and deliver high-touch service to enterprise clients.

Competition

Established cap table providers

Shareworks by Morgan Stanley is Carta's most direct competitor, serving well-capitalized companies such as Uber, Dropbox, and Stripe. The platform integrates with Morgan Stanley's broader financial services infrastructure to provide wealth management and liquidity solutions that Carta does not independently offer.

However, Shareworks primarily focuses on later-stage companies and has limited presence in the venture-backed startup market, where Carta maintains a stronger foothold.

Traditional competitors like Solium relied on manual workflows that required frequent updates to keep cap tables accurate.

Carta's status as a registered transfer agent enables automatic updates triggered by transactions, creating an event-driven system that reduces administrative overhead and enhances accuracy.

Emerging challengers

A new wave of competitors is addressing specific gaps in Carta's offerings. Pulley markets itself as a founder-focused alternative, emphasizing faster customer support and transparent pricing.

It targets companies dissatisfied with Carta's interface complexity and recent controversies. Pulley also provides guided migration services and real-time scenario modeling to attract users considering a switch.

Regional competitors such as Ledgy in Europe and Qapita in Asia are gaining traction by offering localized regulatory support and multilingual documentation, areas where Carta's global platform is less competitive.

These companies leverage expertise in local option plan structures and compliance requirements, creating defensible advantages in their respective markets.

TAM Expansion

New products

Carta is using its proprietary compensation data to develop a standalone Total Compensation platform designed to serve companies outside its core cap table customer base.

The platform leverages anonymized salary and equity data from 40,000 startups to deliver real-time benchmarking and automated pay band management. This initiative creates a new revenue stream by monetizing Carta's dataset.

The company has expanded its fund administration capabilities into a private equity suite that includes waterfall modeling and portfolio analytics. This product targets mid-market private equity funds, a market estimated to be 3-4 times larger than venture capital, with higher fee tolerance and longer customer lifecycles.

AI-powered features are being incorporated across the platform to enhance user experiences. These include predictive error detection, which identifies issues before customers encounter them, and contextual assistance, which anticipates user needs based on workflow patterns.

Customer base expansion

Fund administration is Carta's fastest-growing business segment, converting the 9,000 funds on its platform into recurring SaaS and service revenue.

By bundling software with professional services, Carta increases per-customer value and strengthens switching costs through integrated workflows.

The company is expanding access to its data by offering standalone compensation benchmarking and cap table APIs. This approach targets startups using competitor platforms for equity management while enabling Carta to capture value from its proprietary datasets and specialized tools.

Geographic expansion

Carta obtained regulatory approval in Abu Dhabi Global Market and established Hub71 offices to serve the Middle East and North Africa region.

The company reported 245% growth in regional assets under management. Local licensing supports compliance and creates defensible positions against regional competitors.

The acquisition and rebranding of Capdesk as Carta Europe provide an established market presence and regulatory infrastructure across European markets.

In combination with free-tier offerings in Asia-Pacific, this geographic expansion increases access for seed-stage startups, which can later transition to premium services as they scale.

Risks

Data controversies: Carta's 2024 exit from secondary trading followed allegations of misusing customer data to benefit its own trading operations, eroding trust with key stakeholders. Comparable data governance challenges could weaken the network effects underpinning Carta's competitive position, as investors and companies may hesitate to share sensitive information on the platform.

Market concentration: Carta's revenue growth is closely tied to the performance of venture capital and private equity markets, which have experienced considerable volatility in recent years. A sustained downturn in private market activity could simultaneously reduce demand for cap table management, 409A valuations, and fund administration services, creating correlated revenue risks across its business lines.

Competitive unbundling: Specialized competitors are targeting discrete components of Carta's integrated platform with narrowly focused solutions that may deliver superior functionality in specific areas. If customers increasingly adopt best-of-breed tools over Carta's broader platform, the company could encounter margin compression and customer attrition across multiple product offerings.

Funding Rounds

Share Name Issue Price Issued At
Series G-1 $40.30 Aug 2021
Series G $40.30 Aug 2021
Share Name Issue Price Issued At
Series F $18.21 Jun 2020
Share Name Issue Price Issued At
Series E $10.70 May 2019
Share Name Issue Price Issued At
Series D $6.37 Dec 2018
Share Name Issue Price Issued At
Series C-2 $3.57 Mar 2018
Series C $2.96 Oct 2017
Share Name Issue Price Issued At
Series B $0.89 Jul 2015
Share Name Issue Price Issued At
Series A $0.42 Nov 2014
Series AA $0.02 Jul 2012
Share Name Issue Price Issued At
Series Seed $0.18 Aug 2013
View the source Certificate of Incorporation copy.

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