Finally, a private stock exchange

Tender offers hurt employees

Carta secondary shares traded at $6.9B, roughly 2x our $3.1B Series F nine months ago. There are two reasons we traded at such a premium to our last round price.

Employees love having access to liquidity (whether they take it or not)

At Carta, we are running a trading window once a quarter. The schedule for the next year is published for all shareholders, employees, and investors to see. Everyone knows when they will get to trade Carta stock again. We have eliminated duration risk for our shareholders.

CartaX is the future of growth stage primary capital raising

In our first trading session we only allowed shareholders to sell. But there is no reason we can’t sell out of treasury in the future. Once we have a liquid and active market for our shares, (in our case we have enough liquidity to support ~ $100M of volume per quarter), when we want to raise primary capital we simply sell common shares out of treasury.

This is the just the beginning

CartaX, the private stock exchange, is the next milestone in our multi-decade march to rebuild the world’s financial system. Below is the slide I pulled from our Series A deck in 2014. We’ve come a long way since then but we have longer to go. Stay tuned for more announcements coming….

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