With many companies going down and recent SVB and silvergate burst what happens to people who own stock options of previous startups in carta if carta goes down? i can imagine for example lets say carta has no money because of SVB, what happens??? PSA. gold standard to every blind signature is now TC, YOE and ROLE!!! See below for example. Lets follow this standard going forward --- TC: $300k YOE: 12 ROLE: Staff SWE-SRE
This is what’s meant by a ripple effect? Imagine you have all your money in a box and now that box is on fire…
i know but interested in what happens to stock options as there is no way to own those if carta goes down, what happens?
If house burns down, what happens to stuff inside the house?
Gold standard would be sharing TC in it's 3 relevant components: Last W2 TC Predicted next W2 TC Offer letter TC
stop being sarcastic
That isn't sarcasm, it's me telling you what the gold standard would be.
Carta is a source of record, not a bank. Your option agreement paperwork would still be valid, just more work to get it out of their system which would in such a case go under receivership.
Yeah pretty sure this is right. Your stock options are not liquid so the bank has no ability to lend them out / invest their value in bad investments and lose them.
That gold standard doxxes people at smaller companies
Your options are not determined by Carta’s software systems. Those systems just report information about existing legal agreements between you and your company. Your company has all of the records. It would involve a new software system to display those legal agreements. Even if Carta became financially insolvent they would still have their databases. I don’t think this a fear grounded in reality.
We use it to pay ourselves fat bonuses before going belly up /s
OP are you really staff SRE? Please read what Carta is and how private equity works. Carta is not going anywhere but if it did - you'd have to manage your equity with one of our competitors, that's it.
Nothing - your company has the money you’ve spent to exercise. Carta is just a ledger or record. You still own a security or option.
You get years worth of tax write offs.
can you explain or just trolling?
Private stock owners usually get a yearly 8-k form (was it?) That details any profit sharing & losses. It also lists current stock value. I had some in one startup that went from say 10k to 152$ when i exited. I carryforward the loss and take a small deduction yearly. My CPA does this for me therefore the details are a bit fuzzy.