San Francisco, California, based fintech management platform Carta raised US$ 500 million in Series G led by Silver Lake, the CEO Henry Ward announced in a blog post on Friday, August 13 2021. With this financing round, Carta withholds a total valuation of US$ 7.4 billion, increasing drastically from last year’s figure of US$ 3.1 billion.
This latest fundraiser led Carta to acquire the most prominent investment in its operational span of 9 years.
The company set up an auction for CartaX between its venture Series F and G, which priced it to US$ 6.9 billion from US$ 3.1 billion in Series F, eight months prior to this. The startup then transacted nearly US$100M of secondary in the auction.
Carta expanded its product portfolio in early 2021 and launched a trading platform, CartaX, through which the investors can now buy shares in companies via online auctions. Also, it sold some of its shares through CartaX ahead of the $500 million funding round.
What the CEO has to say
Ward wrote in Carta’s venture announcement yesterday, “A few days after the transaction settled, we had an inbound interest for a primary at that same valuation. We knew that we had about $1B in aggregate demand, and we had a price in hand. We were able to choose a lead investor based on the value they could add to the business, not the valuation they were willing to offer.”
About Carta
Manu Kumar and Henry Ward initially founded Carta as eShares in 2012. It is a transfer agent for private companies that allows seed-stage and pre-IPO companies to manage equity electronically with the participation of their shareholders, employees, auditors, and legal counsel. It digitises paper stock certificates along with stock options, warrants, and derivatives to create a real-time image of who owns what at a startup.
Carta also offers an analytics tool that enables companies to perform financial planning as part of its feature set. The tool makes it possible for companies to calculate how raising a new round of funding would impact the stakes of existing investors. Moreover, executives can use it to predict what return each investor would be likely to receive if their company is sold.
Carta’s subsisting investment backers include Kima Ventures, Andy Palmer, Draper VC, Elefund, Expansion VC, k9 Ventures, XG Ventures, Structure Capital, Subtraction Capital and Scott Banister. To know more, visit http://carta.com/.
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