Carta scandal & bombshell
how concerned are you? tl;dr Carta, a cap table management and software unicorn, is facing a major scandal for allegedly using customers' confidential data without permission. The fallout includes a pause in sales outreach and an exit from the secondary trading business. Legal implications are uncertain, but ethical concerns are widespread. Carta has a history of controversies, including allegations of harassment and layoffs. Competitors see an opportunity, with some experiencing increased sign-ups. The incident highlights broader issues of data privacy, pricing models, and potential disruptions in the startup ecosystem. The nightmare scenario involves the unauthorized transfer of private data and potential loss of control by company boards, impacting valuations and power dynamics. The situation emphasizes the delicate nature of the startup ecosystem. even shorter tl;dr Carta is using their own customer's cap table data (private stuff like valuation/personnel/revenue) to self deal and pitch to prospective customers for secondary stock sales https://fortune.com/2024/01/07/carta-henry-ward-investigating-allegations-confidential-information/?utm_source=email&utm_medium=newsletter&utm_campaign=term-sheet&utm_content=2024010913pm&tpcc=NL_Marketing #finance #corpfinance
lil slap on the wrist
My employer is giving @Equifax a copy of my paystub, Every time I get paid. There is no way to stop that because of company policy. There is no way to tell Equifax to remove my data because NJ has no privacy laws and they tell me to get lost. I am a victim of identity theft who had to spend a couple thousands to get cured. I submitted damages in the class action lawsuit. I got a cheque for 6$ for the inconvenience. But yeah, that 2 years of free credit monitoring with Equifax "works wonders".
Can you stop that with the work number freeze?
No, you can't
Carta will be fine. These solutions are extremely sticky. I’ve used alternatives and frankly Carta is waaay better. I’m not saying that I’m ok with this. I’m saying that they’ll get away with this with little more than a slap on the wrist.
Why are they extremely sticky? When folks can change cloud service providers - why can't people move to save business critical info
Yeah I don’t understand this take. It’s cap table management at the end of the day. Now the product for portco’s I can see being much stickier. If anything, I see this causing disruption in the space.
This is what happens when Indian CEOs lead the companies. They care about short term profits, not about customers or employees.
Henry ward is Indian? Stop this nonsense
Take your racism elsewhere. Henry is as American as they come.
Oh nice, I can select all 4
scandals are normalized here
Pulley sucks. Carta is a much more established corp
Pulley is horribly run I agree
Agree pulley is garbage
Definitely not a one-off at Carta. There are alternatives in the market so weird people think they’re struck with one provider in todays day and age
If I was a Carta customer they'd be gonnnneeeeeeee
Captable products are extremely sticky, customers need a REALLY good reason to waste time migrating over to another provider. Our CEO stirs up VC twitter every few months with some sort of disastrous PR, nothing new here.