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Carta to exit secondary trading business

henrysward.medium.com

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Re: Carta to exit secondary trading business

#81

Post by ahahahahah »

JCM9 wrote: post #55

This is a good move, but still an inadequate response to what originally happened. It’s dogging deep questions about who had access to what data and just how bad the security controls were around startups’ sensitive information. Shutting down this bit of the business doesn’t put folks at ease that their information is still safe with Carta. The Carta CEO has botched the response here multiple times now and this lates…

Name a startup that doesn't have shit security or privacy controls (or regulatory, or ... really anything).

Re: Carta to exit secondary trading business

#83

Post by dbt00 »

AmericanChopper wrote: post #80
xyzzy_plugh wrote: post #14

To be honest this still seems off. If Carta shows respect for your data and privacy I believe they could still offer an opt-in secondary market, and I can see plenty of companies being interested in participating in it. No one was complaining about the secondary market, they were complaining that Carta was double dipping with their data without consent. This whole post feels like he's just trying to move the goalpost…

The comments ITT are a great example of why it’s often a good idea to ignore complaints and do whatever you want anyway. The behaviour that conventionally would be used to build trust, like admitting when you’re wrong and changing what you’re doing (in this case, shutting down an entire division of your company) is simple met with “no not good enough, you were wrong and should be punished more”.

They didn’t admit they were wrong, they said it was just the appearance of impropriety.

Re: Carta to exit secondary trading business

#85

Post by ayewo »

altdataseller wrote: post #45
tiffanyh wrote: post #34

Earlier quoted context omitted.

I’d assume annual since the first number says “/year”, but that blows my mind captable mgmt is $250M in annual revenue.

Is that too little? Too much?

That’s a lot.

I had no idea that a well-oiled Excel-as-a-Service could be so lucrative.

Re: Carta to exit secondary trading business

#86

Post by ayewo »

Animats wrote: post #65
ipsum2 wrote: post #42

Earlier quoted context omitted.

> Fast forward to today, our business is broken down as follows: the captable business is about $250M/year, fund administration is about $100M, private equity is about $20M, and the secondary trading business is about $3M. $250M is more than a few million.

The poster with the original complaint said they were paying about US$10,000 a year for their cap table service. Are there 25,000 startups using this service?

Some startups pay Carta more than $10k a year. For instance, in a community I’m in, someone mentioned that they pay Carta $150k/yr. It comes down to how many of Carta’s various services startups find worth paying for.

Re: Carta to exit secondary trading business

#87

Post by elefanten »

RunawayGalaxy wrote: post #7

Does that go for Carta Marketplace also? Asking because it seems to be a separate business.

Yeah, the commitments in this post don’t preclude an entity other than Carta doing the same thing.

It seems incredibly risky and foolish to try, to the point that I don’t expect them to. But this post leaves room for other attempts.

Re: Carta to exit secondary trading business

#89

Post by caesil »

blindriver wrote: post #4

I thought his responses were terrible and worthy of being fired over the weekend, but I am impressed with his quick action on this. I guess you can put me down as “neutral” towards this person.

He really comes across as a sociopath. And I don't mean that as an insult. I don't see any other good explanation for how he can fail, over and over, to foresee that his clearly unempathetic responses will be received poorly.

Re: Carta to exit secondary trading business

#90

Post by caesil »

tw04 wrote: post #76
milkglass wrote: post #29

I do not understand why these have to be done through Medium posts.

Presumably to make it difficult for any prospective customers to find. Anyone already in the know can rest assured “things have changed” because they’ve been following the news cycle and will readily find the relevant tweets and medium posts. That in theory cause this all to fall out if the spotlight. Any future unwitting potential customer who didn’t think to search for the current CEOs personal medium account to fi…

Well uh, he emailed every customer about it. He also emailed every customer about his previous Medium article, about a different controversy, earlier this year (I hadn't known about it until seeing the email).
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