Photo: Fortune
Equity ownership is a cornerstone of startup culture, but managing it can quickly become a complex, error-prone process. That’s where Carta comes in. Founded in 2012, this Silicon Valley startup has reimagined how private companies track ownership, handle stock options, and communicate value — making what used to be a messy, manual task into a streamlined digital experience.
Before Carta, most startups managed their cap tables — documents detailing ownership stakes and securities — with spreadsheets or paper records. This made it difficult to accurately track shares, handle employee stock options, and maintain transparency with investors. Mistakes could lead to legal headaches, investor distrust, and lost opportunities.
The founders of Carta, Henry Ward and Manu Kumar, recognized this pain point early on and decided to build a platform that would automate equity management, making it accessible and reliable for startups of all sizes.
Carta’s software centralizes cap tables, valuations, and equity plans in one secure, cloud-based platform. Founders can easily issue shares, grant stock options, and model future fundraising rounds with precision.
For employees, Carta provides a clear view of their ownership stakes and potential value, helping align incentives and foster loyalty. Investors gain real-time access to ownership data, simplifying due diligence and reporting.
The platform also supports compliance by tracking regulatory requirements and deadlines, reducing legal risks. Its intuitive dashboards and detailed reporting tools have made it an indispensable tool in the startup ecosystem.
Since its inception, Carta has attracted over 20,000 companies — including thousands of high-growth startups, venture capital firms, and private equity investors. Its user base spans early-stage companies to large private firms, across industries like tech, healthcare, and fintech.
Carta has raised more than $700 million in funding from top investors, valuing the company at around $7 billion. Its success is often credited with professionalizing equity management and contributing to the growth of the private market.
While Carta started focused on startups, it’s expanded its offerings to include private companies of all sizes, secondary markets for private shares, and tools for fund administration. This broader vision helps private companies manage liquidity and shareholder engagement more effectively.
The company’s move into public markets and venture capital services signals a push to become a comprehensive ownership platform — no matter the company’s size or stage.
As the market for equity management software grows, Carta faces competition from startups and legacy providers trying to modernize their services. Data security and compliance are ongoing priorities as the platform handles sensitive financial information.
However, Carta’s early mover advantage, comprehensive feature set, and deep integration into the startup ecosystem give it a strong position. With continued innovation around analytics, automation, and investor relations, Carta aims to stay ahead in the rapidly evolving landscape of private market tools.
By turning a traditionally complicated, manual process into a seamless digital experience, Carta has become a vital part of the startup economy’s infrastructure. Its platform not only reduces risk and increases transparency but also empowers founders, employees, and investors to better understand and unlock the value of their ownership stakes.
As private companies continue to proliferate worldwide, Carta’s role as a trusted equity management partner is set to grow — helping shape the future of entrepreneurship and investment.