3 ms·
Context: Carta have both their original cap table management business, and a ~5 year old secondary liquidity business (CartaX). They pitch their liquidity busi
by amacneil 3y ago
Context:
Carta have both their original cap table management business, and a ~5 year old secondary liquidity business (CartaX). They pitch their liquidity business as opt-in.
However, they have been using private cap table data to approach company investors about secondary sales, without company approval.
From Linear CEO, who's 70+ year old family member was approached to sell their shares:
- https://twitter.com/karrisaarinen/status/1743398553500971331 https://twitter.com/karrisaarinen/status/1743398553500971331
- https://twitter.com/karrisaarinen/status/1743824345334714587 https://twitter.com/karrisaarinen/status/1743824345334714587
Carta CEO's initial response, blaming the customer:
- https://twitter.com/henrysward/status/1743794996732735679 https://twitter.com/henrysward/status/1743794996732735679
Carta claims it was a one-time incident, but:
Paul Graham sounded the alarm in 2021
- https://twitter.com/MarwanRefaat/status/1357820073918910464 https://twitter.com/MarwanRefaat/status/1357820073918910464
Mitchell Hashimoto says it happened to them in 2019
- https://twitter.com/mitchellh/status/1744123473751155154 https://twitter.com/mitchellh/status/1744123473751155154
Carta's ESOP template does not include transfer restrictions, something very standard in agreements but clearly in CartaX's favor.
- https://twitter.com/tiffdukecull/status/1743428292164853846 https://twitter.com/tiffdukecull/status/1743428292164853846
Edit: A good summary of Carta's conflict of interest.
- https://twitter.com/haridigresses/status/1744135421192208520 https://twitter.com/haridigresses/status/1744135421192208520
- Paul-Craft 3y ago> Mitchell Hashimoto says it happened to them in 2019 > - https://twitter.com/mitchellh/status/1744123473751155154 https://twitter.com/mitchellh/status/1744123473751155154 Aha! That might explain the very strong sense of déjà vu I gotDéjà vu when reading this. I thought for a second either I had a screw loose, or there was a glitch in the Matrix. Yeah, that's no good. What it tells me is that they don't care enough about it for it to be a problem for them until someone raises a stink about it, and I'm pretty sure I'm getting a whiff of it right now. How's that old saying go? "When a fish stinks, it stinks from the head?" Yeah...