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Here’s my Carta horror story, since we’re sharing. I left my last company and had 90 days to buy my options. The day after I left the company (January) I exerc
by habosa 2y ago
Here’s my Carta horror story, since we’re sharing.
I left my last company and had 90 days to buy my options. The day after I left the company (January) I exercised. The total I had to pay was about $20k. I didn’t think a lot about it after that.
6 full months later I get an email from Carta. It says my bank account transfer was unsuccessful. They had tried to pull the $20k from my account 6 months after I authorized it with absolutely no warning, and it had overdrafted my checking account by $1k (I don’t keep a ton of cash around).
Ok no big deal, I’ll move the money around and try again. Nope, Carta decided that after a single failed attempt at payment my options were PERMANENTLY canceled. Like, I no longer have the right to exercise them ever. No equity in the company for me, sorry.
After going back and forth with Carta they insisted they “had” to do this even though that’s BS. There’s no reason they couldn’t have attempted a second time to draw payment, they’d already waited 6 months.
To get the equity I had worked multiple years for I had to go to the CEO of my former company and beg personally. He got the board to back-date an equity offer for me of the same amount so I could exercise again. If I had left under left friendly terms I’d have been screwed.
So yeah, don’t use Carta.
- gpi 2y agoThis is concerning. Isn't this regulated? How is this allowed?
- krashidov 2y agohats off to the CEO of your last company
- robocat 2y ago> 6 months That is one seriously fucked up delay. I hate having to closely monitor "professionals" to verify they do their job.
- Sohcahtoa82 2y ago> The total I had to pay was about $20k. I didn’t think a lot about it after that. You must be living in an entirely different world to me that you don't think about an upcoming $20K pull. I would have been calling up Carta after ~10 business days, if not sooner, if they were making me sit on $20K in cash. > and it had overdrafted my checking account by $1k (I don’t keep a ton of cash around). If a $20K overdrafted by $1K, then you had $19K in cash. I can't imagine what your monthly spend is like to feel the need to keep that much. I only keep $5K. First paycheck of the month comes in on the 1st, mortgage payment comes out on the 2nd, and I pay off the credit card. Anything over $5K left goes into savings. Second paycheck comes in on the 15th, pay off the credit card again, pay utility bills, car insurance, make my monthly IRA contribution, and then again throw everything over $5K into savings.
- habosa 2y agoI’m glad that your takeaway from this was to criticize my personal finances.