Does anyone have experience with a competitor that they like? Ledgy?
Carta doing unsolicited tender offer outreach to their customers' investors
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Re: Carta doing unsolicited tender offer outreach to their customers' investors
#22I guess we'll see what Carta has to say for themselves, but seems like it could be a continuation of the lack of organizational discipline they've demonstrated in recent times. This is a really bad look, and given Carta's inability to add significantly more value beyond basic cap table and employee equity management, I wonder if the days are numbered before other companies supplant them, such as Pulley.
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#23Don’t most private companies require board approval for secondaries? I wonder what you’d actually be buying here.
It depends on the shareholder agreement, but many do. However, many of these secondary markets facilitate private market transactions via a forward contract which is sort of like long dated put option.
forward contracts and long dated push options differ in their obligations. Put options gives the buyer the right exercise, but in forward contracts they both are by a specific date.
I assume they would only trigger shareholder approve prior to them being exercised not collateralized in the form of the option.
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#24Relevant tweet further down: https://nitter.net/karrisaarinen/status/1743407369512743094
> Buy price was exactly our series b share price. The angel investor in this case was a family member whose investment was never published and hardly online. Yet he was contacted directly to the email he used with Carta
As said before, it is not impossible that the buy price was determined using public information. However, he is definitely implying it would be impossible to know the identity of this investor if it wasn't for Carta sharing private information with Carta Liquidity.
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#25Does anyone have experience with a competitor that they like? Ledgy?
Pulley is mentioned a few times in the thread; seems legit but again I'm curious if anyone here has used any of these alternatives.
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#26https://nitter.net/karrisaarinen/status/1743398553500971331
What is nitter?
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#27Re: Carta doing unsolicited tender offer outreach to their customers' investors
#28Hold on! Is this legal in any way?
Using confidential information held on behalf of third parties to become market makers?
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#29This is so awful. Carta is the Facebook of B2B software (i.e., hoover up user data then find lots of ways your users don’t expect to monetize it). Their business model has always been premised on a bait-and-switch. It’s how they’ve justified their crazy high valuations (e.g., “Imagine it we could create the largest market for private securities!! We’ll be rich!!!”). Otherwise, the market for cap table management just isn’t that big.
As a founder you should maintain tight control of who is on your cap table. Carta disagrees. That may be good for them but is terrible for startups. If you’re using Carta, call your support rep and insist they never market, offer, or induce any buyers or sellers of your stock without your explicit permission. If they refuse, change vendors.
Re: Carta doing unsolicited tender offer outreach to their customers' investors
#30Does anyone have experience with a competitor that they like? Ledgy?
AngelList is great
https://www.angellist.com/startups