News Summary

• That business accounts for only $3 million of Carta’s annual revenue, according to Ward, compared to the $250 million of annual revenue that its cap table business generates (along with $100 million in fund administration, and $20 million in private equity)..
• The perception that Carta was using confidential data to boost its secondary markets business just wasn’t worth the risk to its primary businesses.“Having ground truth data is not an advantage if we can’t use it..
• The customer, the CEO of Linear, accused Carta of using his startup’s confidential data without his approval to build out Carta’s own order book for its secondaries market platform.Carta blamed the incident on a rogue employee..
• Just the appearance of impropriety is damning,” Ward wrote on Monday.“We will focus on what we do best, which is cap table and fund administration software..
• In the post, Ward said that Carta’s outreach to three companies’ shareholders was “absolutely a breach of our privacy protocols..
• For example, if we send emails to prospects through publicly available information, how do customers know if we sourced it publicly or internally?.